The Kerala High Court granted bail to 41 people who were arrested in connection with the April 10 fire at the Puttingal Devi temple near Kollam, in which 114 people were killed and 350 injured.
A huge stock of fireworks exploded before dawn at the temple, while the annual fireworks display was on. The disaster also damaged more than 150 houses and agricultural crops in a one square kilometre radius.
The arrested include the temple committee members and workers attached to two different contractors who were in charge of the fireworks display.
Two others managed to get bail earlier. The court directed all of them to surrender their passports and asked them not to leave Kerala.
Kerala has already sought Rs 117 crore from the central government to mitigate the destruction caused by tragedy.
Prime Minister Narendra Modi had visited the temple accident site and also the injured in hospital, the day the tragedy occurred.