The judge said police failed to make a prima facie case and that the evidence presented to the court is ``unreliable''.

Investigating Officer Shrikant Mahajan told The Indian Express that the police would appeal against the order in the Bombay High Court.

The five accused, Champalal Desarda, working president of the Shri Guru Ganesh Jain Shikshan Sanstha; Suwalal Chalani, secretary; his 30-year old son Sandeep; his friend Balu Surana; principal of the DKMM Homoeopathic College, Dr Shantilal Desarda; and Bhikchand Pipada, supervisor of the Guru Ganesh Ashram, where the trust has its office, were in magisterial custody till bail was granted today.

The judge has asked the five accused to remain outside the Aurangabad district limits till the police file a chargesheetand has also directed them to present themselves before the court when required.

Counsels for the accused argued that the police had periodically changed tack during the course of the investigation and have no concrete evidence against the accused. Police had first suspected a case of dacoity and murder. Then, they suggested that the slain muni had an illicit relationship with some women. Knowledge of the relationship could have provoked someone to commit murder, police had pointed out, according to the counsel. Soon after they arrested Bhikachand Pipada, police said he could have conspired to murder the muni as he had learnt of the muni's intention to sack him from the ashram.

The police's latest theory, that one of the trustees Desarda Chalani had also conspired with Pipada to murder the muni was equally inconsistent as they had made a reference to only two meetings where the murder could have been planned, the counsels argued. They claimed it was unlikely that the accused had assembled at Desarda'sresidence, eight days before the murder, as Desarda was in mourning. On another occasion, police had submitted that they had a written statement from a witness (whose identity they had concealed) who claimed to have overheard the five accused discuss the murder plot. The witness had said the discussion took place near the samadhi of Guru Mishralalji at the ashram on June 25, four days before the murder.The defence counsel said that business-savvy people like Chalani and Desarda were least likely to discuss a murder consipracy in the open without ensuring that they were not being overheard.

Also, they pointed out, the statement of the anonymous witness was not available with the police at the time of the arrest on July 29.