Raja was granted bail on the grounds of parity. He is expected to walk out of Tihar jail by 7 pm today, said reports.
Supporters of Raja were seen in a celebratory mood outside the court after the verdict was pronounced.
According to court order, Raja cannot travel to Tamil Nadu without the court's permission.
Earlier, former Telecom Secretary Siddharth Behura - accused in the 2G spectrum case - was granted bail by the Supreme Court.
"Raja had applied for bail for the first time and he was granted bail. This is in lines with SC order," said Sushil Kumar, Raja's lawyer.
"The case is all sewn up and there is very little Raja can do to influence the case. I said he should get bail according to Supreme Court guidelines. I only fear for his life," said Subramanian Swamy, Janata Party President and a petitioner in the 2G case.
"We are very happy that Raja has been given bail. The party is with him," said TR Baalu, DMK leader.
Raja had sought bail on the grounds of parity as other 13 co-accused in the case were let off by the Supreme Court, Special Court and Delhi High Court in the case.
The CBI, however, in its argument last week said that Raja should not be granted bail on the grounds of parity as he was the starting point of the whole conspiracy around the 2G scam.
His lawyer also argued that the case was documentary in nature and hence, there was very little chance that Raja could hamper the evidence in this case.
Initial investigations revealed that Raja and other co-accused in the case received another bribe of Rs 200 crore in the spectrum scam.
Raja was arrested on Feb 2, 2011 following his involvement in the 2g spectrum scam on charges of forgery, criminal conspiracy and corruption.