The Supreme Court on Tuesday set aside the Centre's October 23 decision divesting CBI Director Alok Kumar Verma of his powers and sending him on leave.
The top court reinstated Verma but restrained him from taking any major policy decision till the Central Vigilance Commission inquiry into corruption charges against him is over.
The top court also said that any further decision against Verma would be taken by the high-powered committee which selects and appoints the CBI Director.
It said the high-powered committee will take its decision based on the findings of the CVC inquiry. It said the meeting of the committee should be convened within a week.
The court also set aside the Centre's decision to appoint senior IPS officer M Nageswara Rao, who was the joint director, as the interim chief of the agency.
By the verdict, the Supreme Court has set aside the Centre's decision of October 23 divesting Verma of his powers as CBI chief and sending him on leave.
The Centre had taken the decision against Verma and CBI's Special Director Rakesh Asthana after their feud had become public as they levelled allegations of corruption against each other.
The judgment on Tuesday was penned by Chief Justice of India Ranjan Gogoi. However, the CJI didn't attend the court and the judgment was pronounced by Justices S K Kaul and K M Joseph.
Verma's two-year tenure as CBI Director ends on January 31.