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Ebrahim Kunju had secured a stay on the single bench verdict which had ordered an investigation into the flyover scam after he appealed against the same before the division bench.
Expressing doubts over his conduct, the court sought to know whether he had misled it on his health conditions to secure bail.
During the bail period, he will not be allowed to travel outside Ernakulam district. He also has to surrender his passport to the high court.
The investigators can question him from 9 to 12 in the morning and 3 to 5 in the evening at the hospital.
According to the case, the flyover was designed in a manner so as to help 13th accused Nagesh who was arrested yesterday, owner of RDS Project and contractor Sumit Goyal who is the first accused and other accused, to make pecuniary benefits.
The VACB submitted that the health condition of the former public works department minister, currently treated at a private hospital here for myeloma, a type of cancer, should be evaluated and sought formation of the medical board.
Culture minister A K Balan said no such raids had taken place in 'Chandrika'. He held up the day's edition of 'Chandrika' and said that not a single word about a raid had been mentioned in the paper.
The government will take a decision on the future course of action for protecting the flyover after considering Sreedharan's recommendations too.