Bhubaneswar, Aug. 5 -- A Special Court in Cuttack has granted bail to former Director of the Directorate of Teacher Education (TE) and State Council of Educational Research and Training (SCERT) Manoj Kumar Padhy, who was arrested by the Crime Branch in connection with the alleged school textbook irregularities that led to the publication of error-ridden books and an estimated loss of Rs 175 crore to the State exchequer.

Allowing the bail application, the court held that while the alleged irregularities had caused substantial financial loss to the State and adversely affected nearly 46 lakh students, the prosecution had, at this stage, failed to place prima facie material showing that Padhy had derived any personal or pecuniary benefit from...