The court also said that any further decision against Verma would be taken by the high-powered committee which selects and appoints CBI director.
In addition, it also set aside the appointment of M. Nageswara Rao as interim chief of the agency.
A three-judge bench pronounced the verdict after hearing Verma’s petition against the Centre’s move to divest him as the chief of the probe agency.
The bench had reserved its verdict in the matter on 6 December.
Alok Verma and his deputy Rakesh Asthana were both sent on leave in October after the infighting between the two became public.
On October 23, Verma and Asthana were asked by the government to proceed on leave after both accused each other of corruption and interference in investigations.