The Congress MLA will step out of the jail after two months.
The Chief Minister's Special Vigilance Cell had arrested the leader on October 6 over his alleged involvement in misappropriation of funds meant for construction of roads in Mandi block under his constituency.
The CM vigilance cell had arrested six persons in June, of whom three were government officials on charges of misappropriation of funds over Rs. 25 lakhs.
A total of 35 lakhs was released for road construction under 14 MLA local area development schemes in 2017-18. Of the money released, Sherman Ali allegedly siphoned off Rs. 25,08, 323 without any execution of the work as per plan estimate.