Cancelling the admissions of 768 students, the medical council had said that since last year, the admissions through medical entrance exam NEET have been made mandatory by the Supreme Court, but these institutions admitted students who did not qualify the test; many were allegedly admitted after the last date.
The court, staying the order, said the council took too much time to act on the issue and the students' studies would suffer if admission is cancelled now, adding that the stay is subjected to the final verdict.
The move by medical regulatory body came after parents of NEET qualified students and Lieutenant Governor Kiran Bedi wrote to it alleging irregularities.
Chief Minister V Narayanasamy had said the institutions were responsible for the situation and his "government had no role in it".
In July this year, the council had cancelled the admissions of nearly a hundred students enrolled in post-graduation courses for similar reasons.
At the time, the colleges had admitted the students even though they had not undergone counselling by the central Admission Committee CENTAC, another procedure made compulsory by the Supreme Court, Ms Bedi had said.