Here's your 10-point cheat-sheet to this big story:
The top court said the Central Vigilance Commission must complete its inquiry against Mr Verma in two weeks. The case will come up next after Diwali, on November 12.
Mr Rao as interim chief can only be administrative head, the judges decided. All decisions taken by him since he took charge around 2 am on Tuesday night - which includes the mass transfer of officers investigating Mr Asthana - have to be submitted in court in a sealed envelope.
In a petition just before the high-profile hearing, Mr Asthana also challenged the government's decision to send him on leave over allegations of bribery. "We are not bothered about Rakesh Asthana," said the judges, saying no action could be taken in this case until another court where he had filed a petition gave its verdict.
Ugly hair-pulling between the CBI's top two officers escalated after Mr Verma launched an investigation against his deputy, accusing him of taking bribe from a businessman on the agency's radar.
Mr Asthana, CBI's Special Director, fired back at his boss with the same charge, alleging it was Alok Verma who had taken bribe from the same businessman. Those are the charges being examined by the vigilance body, which oversees the CBI.
Alok Verma has said in his petition that the autonomy of the country's premier investigating agency is being compromised as certain investigations against high functionaries "do not take the direction desirable to the government".
On Tuesday, Mr Asthana took the CBI to court and asked for the CBI's case against him to be dropped. He was then divested of all his powers and sent on leave.
Hours later, the government decided on similar action against the CBI chief, on a recommendation from the Central Vigilance Commission. "Neither of the two officers, nor any agency under their supervision can investigate charges against them," the vigilance body said, explaining why the CBI chief must also go.
Senior Union Minister Arun Jaitley called the Supreme Court order very positive and said: "All officers of the CBI, particularly the top two officers, like Caesar's wife, must be above suspicion."
Opposition parties led by Congress president Rahul Gandhi protested outside the CBI headquarters in Delhi against the government's move and what it called attempts to control and undermine the investigating agency. Mr Gandhi and other leaders also walked into a police station and turned themselves in.
Haryana To Implement Supreme Court Order On SC/ST Sub-Categorisation Immediately Former Delhi Health Minister Satyendar Jain Gets Bail After 2 Years PM Modi's 2nd Visit To Russia This Year, To Attend BRICS Summit Next Week Hamas Confirms Yahya Sinwar Killed By Israel, Won't Free Hostages Until... MK Stalin Asks Centre To Recall Tamil Nadu Governor In Row Over Anthem Drone Footage Of Hamas Chief Yahya Sinwar's Last Moments Released By Israel UPSC ESE 2025: Application Window Reopens, Check Deadline And Key Details Australia's Northern Territory To Soon Resume Jailing 10-Year-Olds If You Doing Things After Eating A Meal, You Must Stop Right Away Track Latest News Live on NDTV.com and get news updates from India and around the world.