The petition was filed by Shaik Dastagiri, an accused-turned-approver, in the case.
Justice K Lakshman had reserved orders on the petition last month.
The High Court also granted full-fledged bail to Avinash Reddy's father Bhaskar Reddy in the same case. He was earlier granted interim bail on health grounds.
The court, however, refused to grant bail to other accused G. Uday Kumar Reddy and Sunil Yadav.
Dastagiri had alleged threats and intimidation by Avinash Reddy's "henchmen" to "influence" his deposition in favour of the MP.
The Central Bureau of Investigation (CBI) also filed a counter to Dastagiri's petition, with its counsel arguing that Avinash Reddy wielded considerable influence and had managed to sway certain witnesses in the case.
The central agency highlighted several complaints lodged by Dastagiri, alleging threats to himself and his family members, asserting that Avinash Reddy had breached the conditions of his bail.
Vivekananda Reddy's daughter Y. S. Sunitha Reddy too had contested anticipatory bail to Avinash Reddy.
Avinash Reddy's counsel T. Niranjan Reddy, however, had argued that Dastagiri was already under protection through the witness protection scheme.
Avinash Reddy, who is seeking re-election from Kadapa as the candidate of YSR Congress Party (YSRCP) in the May 13 election, was granted bail by the High Court on May 31, 2023.
Avinash Reddy, who is a cousin of Andhra Pradesh Chief Minister Y. S. Jaganmohan Reddy, had approached the High Court for anticipatory bail after failing to appear before the CBI three times.
Former minister and former MP Vivekananda Reddy, brother of former chief minister Y. S. Rajasekhara Reddy YSR), uncle of Jagan Mohan Reddy, was murdered at his residence in Pulivendula on March 15, 2019, weeks before the elections.
In April last year, the CBI arrested Avinash Reddy's father Y. S. Bhaskar Reddy, a cousin of YSR.
The CBI had told the court that Bhaskar Reddy, Avinash Reddy and their follower Devireddy Shiva Shankar Reddy hatched a conspiracy to murder Vivekananda Reddy as he had opposed the Kadapa Lok Sabha ticket to Avinash Reddy.
Avinash Reddy has denied the allegations against him and his father and alleged that the CBI ignored several key facts in the case.