Additional commissioner of police Biju George Joseph said the organisers were asked to remain in the city as a probe is going on against Nandy and festival producer Sanjoy Roy.
"We asked the organisers to not leave the city in order to complete the probe," Joseph said.
Confirming the development, Roy said, "I have signed the papers on behalf of the JLF team to comply with the orders."
An FIR was lodged against Nandy and Roy last Saturday by Rajpal Meena, Chairperson of the SC/ST Rajasthan Manch, after Nandy stoked a controversy with comments that people from OBC, SC and ST were the "most corrupt".
Nandy left Jaipur yesterday skipping the rest of the literature festival, which ends today.