Pandey, who is currently under suspension, approached the high court Thursday seeking anticipatory bail in the case.
His bail application had been rejected by the lower court on January 5.
Hearing the matter, the single bench of Justice Manoj Kumar Tiwari directed the state government to file a counter affidavit in the case and granted a stay on Pandey's arrest till the next date of hearing in the case on February 12, his counsel Vipul Sharma said.
The scam is related to the alleged conversion of land use with the connivance of officials to pay selected landowners compensation 20 times more than they deserved.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)