However, the court denied bail to the ship's captain Dudinik Valentyn and its Vice-Captain Paul David Dennish Towers.
As part of the bail condition, the crew had been asked to stay in Mylapore in Chennai and sign before Q branch Police there in the morning and evening till further orders.
The crew was arrested after the Coast Guard personnel found the ship carrying arms illegally in Indian waters off Tuticorin, a charge denied by the vessel authorities.
They are facing charges under the Arms Act and Essential Commodities Act, which was invoked as the ship had allegedly bought diesel from a local agent in violation of law.
A judicial magistrate court in Tuticorin had remanded them to judicial custody following which 12 Indians were lodged at Palayamkottai Prison and the others were taken to the Chennai Puzhal prison.
US firm AdvanFort International, which owns the ship, had been maintaining that the vessel was involved in anti-piracy operations and had not strayed into Indian waters.