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Aravindakshan, the third accused, was arrested on September 26, 2023.
Legal proceedings were ongoing against the actress and her family in connection with a flat scam case.
The money laundering case stems from an FIR filed by the Kerala Police Crime Branch regarding the 'non-repayment' of a loan amounting to QAR 30,643,204 (approximately Rs 61.3 crore) from the United Bank Limited in Qatar.
The ED conducted raids at 22 locations across Tamil Nadu, West Bengal, Karnataka, Uttar Pradesh, Meghalaya, and Punjab, including four lottery ticket printing presses.
The High Court also sought explanations from the Central Election Commission and the state police chief.
The raids are taking place in Chennai and Coimbatore, with officials searching various locations linked to the two individuals.
Officials also seized several incriminating materials, such as mobile phones, laptops, SIM cards, etc, during the raids
The Rouse Avenue court cited "delay in trial" and his "long incarceration" as reasons for the decision.
The AAP chief was arrested by the Central Bureau of Investigation (CBI) on June 26.
The raids were carried out at Sandip Ghosh's residence in Beliaghata and at two locations in Howrah and Subhasgram.
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