CA Suresh Singhal would now be a key prosecution witness against the accused -- Jindal and others -- in the high-profile case.
The court, however, restrained him from leaving the country without its prior approval.
Special CBI judge Bharat Parashar passed the order after Singhal accepted the pardon granted by the court on July 11.
"Singhal has accepted the pardon so granted to him subject to conditions...Accused is hereby granted pardon turning him as a government approver...The name of accused is accordingly deleted from the array of accused persons as he shall be now a prosecution witness, to be examined upon commencement of recording of prosecution evidence," the court said.
Taking strong note of "tardy" CBI probe, the court asked the agency to conclude the investigation expeditiously.
"Investigating officer states that further investigation in the matter is in progress as certain persons are yet to be examined but they could not be examined as they are not available in the country. He has been directed to expedite further investigation as the trial of the matter is getting delayed," it said.
The court has now put up the matter for further hearing on August 24.
Earlier, CBI had not opposed Singhal's plea to turn an approver in the case.
Besides Congress leader and former MP Jindal, former Minister of State for Coal Dasari Narayan Rao, ex-Jharkhand Chief Minister Madhu Koda and 12 others are accused in the case pertaining to alleged irregularities in allocation of Amarkonda Murgadangal coal block to Jindal Steel and Power Ltd (JSPL) and Gagan Sponge Iron Pvt Ltd (GSIPL) in 2008.
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