The chief of a tour bus operator indicted over a fatal accident has been released on bail, prosecution sources said Saturday.

Yumihide Hariu, president of Rikuentai, was arrested last month on suspicion of allowing the driver of a bus that crashed and killed seven passengers in April to use the company's name to illegally obtain business permits.

Hariu, 55, was later indicted for violating the Road Transportation Law while the bus driver, Kazan Kono, 43, was indicted for causing the accident.

Investigative authorities suspect lax operational management by Rikuentai may also have played a part in the accident.