A bench of Justice Suresh Kait suspended the sentence keeping in view his old age and various ailments.
"I suspend the sentence till disposal of case," the court said.
The court released him on bail considering that he is an 86-year-old heart patient and keeping in view the medical report submitted by the Tihar Jail authorities, which said he suffered from heart diseases and cervical spondylitis.
It directed Sukhram to furnish two sureties of Rs10 lakh and asked him not to leave the country without the prior permission of the court.
The CBI had opposed his bail, saying he has been convicted twice earlier and is a habitual offender.
Sukhram, who had held the Telecom portfolio in PV Narasimha Rao's Cabinet, was convicted on November 17 in a cable contract case. He was handed out five years jail term by Special CBI Judge RP Pandey on November 19 and sent to jail.
He was convicted for misusing his official position during his tenure as telecom minister in award of a contract worth Rs30 crore to Haryana Telecom Limited (HTL), a private firm, to supply 3.5 lakh conductor kilometres (LCKM) of PIJF cables to the telecom department after taking Rs3 lakh as bribe.
Sukhram had earlier been convicted in two separate corruption cases in 2002 and 2009 but remained out of jail after suspension of his sentence.