Dutt's bail had been extended three times since his conviction on November 28, 2006.
On Tuesday, several relatives of those convicted in the 1993 Mumbai blast case staged a protest outside a TADA court over the preferential treatment being given to Sanjay Dutt in the case.
Demanding similar justice for their near and dear ones, the protestors said equal justice should be given to everyone, irrespective of their status.
Sanjay Dutt, convicted for possessing illegal weapons, had filed an application under the Probation of Offenders Act, 1958.
According to the Act, a person convicted of any offence other than the one punishable with death or life imprisonment, can be released on probation instead of serving time in prison.
Some Bollywood and prominent personalities had also filed testimonials in a special court vouching for Sanjay's behaviour. Among them are Bollywood legend Dilip Kumar, former Mumbai sheriff Nana Chudasama, and social workers Dr. Yusuf Merchant and Vipul Khadri.
Sanjay's lawyers say the court should consider his "good conduct" during the years he has been out on bail.
According to Sanjay's lawyer, his offence could still carry a sentence of up to ten years in jail. He has already served 15 months (from July 4, 1994 to October 16, 1995) in jail.
Sanjay was cleared of charges of conspiracy in the 1993 Mumbai blast case. But he was booked for illegally possessing an AK-56 rifle that had come in a consignment of arms and explosives meant for use in the Mumbai serial blasts that killed 257 people.