Amanatullah Khan was arrested on charges of "rioting and obstructing public servants.
Aam Aadmi Party legislator Amanatullah Khan, arrested by Delhi Police for taking part in a protest against an anti-encroachment drive in the national capital, was granted bail by a local court on Friday.
The judge said that the accused was an elected public representative and being an MLA, it was expected from him that he will make efforts to maintain law and order.
Also, there are negligible chances of him absconding, if he is released on bail, the judge said.
"The fact that accused is no more required for custodial interrogation, and considering a submission made on behalf of accused and above stated facts and circumstances, application moved by the IO for judicial custody of the accused is hereby rejected and accused Amantullah Khan is granted bail," the judge said.
The demolition drive by the civic authority sparked violent protests in the Madanpur Khadar area of the capital, where locals claimed that legal structures were bulldozed.
Mr Khan was arrested on charges of "rioting and obstructing public servants from discharging their duty" after he intervened in an anti-encroachment drive in southeast Delhi where the BJP-governed civic body demolished several structures they deemed illegal.
"I am ready to go to jail if it saves the houses of poor people. There is no encroachment here. I will support them (civic body) in demolition if there is any encroachment," Mr Khan had told news agency ANI before his arrest.
On April 20, an anti-encroachment drive was carried out in Jahangirpuri which had witnessed a communal clash just a few days ago during a Hanuman Jayanti procession in the area. The drive was halted following a Supreme Court order.