The Central Bureau of Investigation (CBI) special court refused to grant bail to Jagan, as the MP from Kadapa is popularly known.
This was his second bail petition dismissed by the court in a week and the third since his arrest in May. The Supreme Court had also dismissed his bail plea in October.
The CBI court Nov 28 dismissed the first petition, in which Jagan sought to invoke his statutory right to bail, claiming that the CBI had failed to complete the probe in his case within the stipulated 90 days.
The second bail petition, a regular one, was dismissed by the court on the ground that the investigations into the case were still on. The CBI had opposed the plea saying that if released on bail, Jagan could influence the investigations and tamper with evidence.
Jagan had filed both the petitions in one go on November 16 but the court considered on priority the statutory bail which can be moved only once during the entire detention period.
The court on November 28 had dismissed Jagan's statutory bail petition observing that granting bail at this stage will not only impede the investigation, but also infringe the purpose set out by the Supreme Court in its October 5 order.
The investigating agency had pointed out that the apex court, while dismissing a bail petition of the accused, had observed that he could seek bail only after completion of the investigation in seven offences. The CBI counsel also argued that the Supreme Court did not fix any timeframe for completion of the investigations and filing of final charge sheet.
Following the rejection of his first petition, Jagan challenged the CBI court order in the Andhra Pradesh High Court, which Monday asked the CBI to file a counter. The matter will come up for hearing on December 11.
Jagan was arrested by the CBI May 27 and lodged in Chanchalguda Central Jail here.
The CBI alleged that Jagan conspired with his father and then chief minister Y.S. Rajasekhara Reddy to favour some individuals and companies, which made quid pro quo investments in his businesses.