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The order was delivered by Justice A B Palkar who modified a lower court's verdict directing the STF to shift Tyagi to a central prison on August 31 since he had been remanded to jail custody.
The lower court had given Tyagi the liberty to move a higher court in appeal.
Disposing of Tyagi's petition, Justice A B Palkar ruled that he could continue to undergo treatment at Bombay Hospital for backache and cardiac problems until his bail plea was decided by the lower court.
In a related development, a sessions court adjourned to September 3 the bail petition filed by Tyagi after hearing submissions of the state.
Tyagi's lawyer Ashok Mundargi would submit fresh arguments on that day.
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