Former chief minister of the southern state of Tamil Nadu Jayaram Jayalalitha was jailed last month for four years on corruption charges.
In a case that lasted 18 years, she was found guilty of amassing unaccounted-for wealth of more than $10 million.
Supporters wept on the streets when a court rejected an earlier bail plea.
Granting bail on October 17, India’s top court directed her to “complete all paperwork” relating to the appeal against her conviction within two months in the Karnataka high court.
Lawyers for Jayaram Jayalalitha, 66, had argued that she should be given bail because she is unwell and appealing against her conviction in a higher court.
However, the court warned Jayaram Jayalalitha it would not give her “a day more” if she failed to complete the procedures.
The Supreme Court also asked the former chief minister to ensure her party workers remained peaceful.
Her supporters’ protests against last month’s conviction meant they had to be forcibly dispersed by police.
The Karnataka court has sentenced Jayaram Jayalalitha and three other accused to four years in prison each, with Jayalalitha also facing a 1bn rupee fine ($16 million). The others have been ordered to pay a fine of about $1.6 million each.
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