Mumbai:  The Bombay High Court on Wednesday granted bail to underworld gangster Chhota Rajan, who was convicted earlier this year in connection with the murder of a hotelier in Mumbai in 2001. The court has suspended his life sentence.

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A division bench of Justices Revati Mohite Dere and Prithviraj Chavan directed the gangster to furnish a bond of ₹ one lakh for the bail, reported news agency PTI.

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Despite the bail, Rajan will continue to remain in jail as he is also serving a life sentence for the 2011 murder of journalist Jyotirmoy Dey, and other criminal cases.

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On May 30 this year, a special court convicted Rajan and sentenced him to life imprisonment for the murder of Jaya Shetty - who owned the Golden Crown Hotel at Gamdevi in Mumbai. 

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On the night of May 4, 2001, two of Rajan's shooters allegedly barged into the hotel premises and killed Shetty on the upper floor of the joint. 

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A probe into the case had revealed that the victim had complained of getting extortion threats and calls from Rajan's associates and was killed because he failed to pay the money. 

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Rajan, 64, is one of the dreaded mafia syndicate bosses in Mumbai. He was first arrested in 1979 for assaulting police constables. 

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After he was released from jail, the gangster joined the Bada Rajan gang and then sought refuge under Dawood Ibrahim. 

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In 1989, Rajan sneaked off to Dubai and Indonesia - where he spent nearly 27 years as a fugitive on the run. He was deported to India in November 2015. 

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The underworld gangster is wanted in several criminal cases, including murder, extortion, smuggling, and drug trafficking. 

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