Borislav Gutsanov, chair of Varna municipal council and top member of the Bulgarian Socialist Party, who was arrested in a high-profile police raid, has been released from the prison hospital and allowed to get in-house treatment.

The ruling was delivered on Tuesday by Varna Appelate Court.

Gutsanov was listed last month in the city's “St. Anna” hospital with what is said to be a serious case of pneumonia and later moved to the prison hospital in the capital Sofia. According to Gutsanov's attorney his client's health declined in the last few days and has requested a medical exam.

Earlier in April Varna Appellate Court ruled that he stays behind bars, saying the evidence provided by prosecutors, who accuse Gutsanov of leading a criminal group in the period 2003-2007, is solid enough and he should remain in detention.

Gutsanov has repeatedly said that they trial against him is political. He has denied to have had business operations with Daniel Slavov aka Dido Dunkata, who is suspected of organizing contraband cigarette channels in the Varna area and was arrested during the same police operation codenamed “Jellyfish”. Slavov is also behind bars.

The detainees have allegedly abused taxpayers’ money, namely for deals to purchase second-hand buses which were later sold to Varna's public transportation at much higher prices.

Borislav Gutsanov was arrested alongside the Director of the Varna municipality ‘autotransport’ department, Pencho Penchev and Yana Krusteva, the department’s Chief Accountant, on May 31.

Businessman Daniel Slavov aka Dido Dunkata was also taken into custody after being arrested in his own Hotel 'Capitol'.

The arrests came on allegations of a number of crimes, including the masterminding of a crime gang, including high-ranking officials, embezzlement and malfeasance in office, forging of documents.

Borislav Gutsanov has been a member of the Executive Board of the National Council of the BSP since November 2009, on which he is responsible for local government and regional policy. He was top of the BSP list during the municipal council elections in 2007 and was soon elected as Chair of the Varna municipality council. During the 2009 general elections Gutsanov was second on the BSP list for the Varna region behind party leader and ex PM Sergey Stanishev.