YSR Congress president YS Jaganmohan Reddy's hopes of an early release from jail on bail were dashed with the Central Bureau of Investigation special court in Hyderabad rejecting his bail plea on Friday.
The court rejected his petition after prolonged arguments of the CBI counsel Ashok Bhan and the legal team of the accused.
Strongly opposing the bail petition Ashok Bhan, the additional solicitor general, said that Jagan's argument that he should be granted bail to campaign for his party as he was president of YSR Congress had no basis because there were more than hundred members of Parliament who were facing the criminal charges.
Submitting to the court that Jaganmohan Reddy was an economic offender, Ashok Bhan said, "Handful of white collar criminals were trying to subvert the system".
The CBI counsel said that modus operandi of Jagan was to send the money abroad through illegal channels and then bring it back in to his companies as investments.
Jagan's counsel on the other hand laid emphasis on political angle alleging that the CBI's action of arresting Jagan was politically motivated coinciding with the by elections in the state.
However Ashok Bhan denying that the agency was working at the behest of Congress party mentioned the arrest of a Congress MP in Commonwealth Games case.
Jagan was arrested by the CBI on Sunday last after three days of intense questioning about the misuse of power to amass wealth and source of his disproportionate assets.
