The High Court held that it can not keep the religious leader in jail based on just allegations and needed substantial material against Nithyananda to keep him confined.
Nithyananda has been embroiled in a sex scandal ever since a sleazy tape of the godman's sexual romp with Tamil actress Ranjitha hit the media.
The Karnataka Criminal Investigative Department (CID), which is probing into the case, is yet to submit any evidence or reports against the Swamiji.
The CID faces several roadblocks as the victims of Swami Nithyananda are yet to come forward while Ranjitha's whereabouts are still unknown. However, in a massive milestone in the probe, the CID has received the forensics report confirming that the Swamiji's sex tape is genuine.
Over the past few days disciples of the tainted godman have been conducting various poojas and undertaking penance at the ashram seeking divine intervention.