A bench headed by Justice Aftab Alam granted the relief after Chaube pleaded for bail on the ground that he needs to take care of his mother who is suffering from cancer.
Chaube has been lodged in the Sabarmati central jail for nearly five years after he surrendered before a court in 2007.
His involvement in the fake encounter case was being probed by the CBI.
Sohrabuddin and his wife were allegedly abducted and killed in a fake encounter by Gujarat's Anti-Terrorist Squad (ATS) from Hyderabad.
Tulsi Prajapati, who was the prime witness of their death, was also subsequently eliminated.
Former Gujarat Home Minister Amit Shah has also been made accused in the case. Shah, a close aide of Chief Minister Narendra Modi, was arrested by the CBI on July 25 2010 and had spent over three months in Sabarmati jail in Ahmedabad.
He has been accused by the agency of being the kingpin of the conspiracy leading to the fake encounter killing of Sheikh in November 2005.
Students of Charan Singh Chaudhary University today submitted a memorandum complaining against the "errors" in the merit list available on the ...