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A first information report had been filed against Tyagi, in a case pertaining to the 1992-93 communal riots.
The directive came as the Maharashtra government opposed his anticipatory bail plea.
Hearing Tyagi's bail plea, Justice A B Palkar restrained the police from arresting the former police chief to enable the latter to file a rejoinder to the state's affidavit.
Tyagi had on June 2 moved an anticipatory bail petition. The state sought time to file an affidavit and promised that Tyagi would not be arrested till June 8.
The Special Task Force filed an FIR on May 25 last, against Tyagi and 16 policemen, who resorted to firing at Suleman Usman Bakery, leading to the death of nine persons during the riots eight years ago.
Tyagi, who was then joint commissioner of police, is charged with issuing orders to his policemen to open fire.
The relative of a victim of the police firing filed an application to oppose Tyagi's bail plea, saying that he should be allowed to intervene through his lawyer P A Sebastian.
Abdulla Abul Kasim said he was 12-years-old when his father Maulana was allegedly shot dead by police in a madrasa (religious school) near the bakery on January 9, 1993.
This is for the first time that the head of a police force has been charged with the murder of nine persons.
In the affidavit, the state has placed responsibility on Tyagi for police firing since he had gone to Suleman bakery as head of a special operation squad.
Tyagi denied that had ordered the firing.
Admitting to have gone with a squad to the area, he said he had waited outside while other policemen went inside.
Tyagi said he had learnt later that the squad had fired in self-defence, after they heard shots from the rooftop and saw men holding weapons hiding behind a water tank.
Tyagi has contended that his act was in discharge of the constitutional authority of maintenance of public order.
The former police commissioner alleged that there were powerful lobbies pressurising the investigating agency to effect his arrest.
The government affidavit, on the other hand, said there was ample evidence to show that Tyagi had taken control of the situation and that the operation was executed under his leadership.
The affidavit, prepared by senior counsel P R Vakil and affirmed by Assistant Commissioner of Police P N Sonavane, says that it is not a fit case to grant anticipatory bail in view of the nature and seriousness of the offence.
The state denied Tyagi's contention that the investigating agency wanted to malign his reputation by arresting him. If there was any such object, Tyagi would have been arrested long ago, it argued.
The affidavit further contended that a delay of nine years in lodging the FIR was no ground to grant anticipatory bail.
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