A sessions court in Mumbai on Monday rejected the pre-arrest bail pleas filed by two directors of the scam-hit Punjab and Maharashtra Cooperative Bank (PMC).
Additional Sessions Judge S T Soor turned down the applications of Parmeet Sodhi and Surjit Singh Narang after noting that their custodial interrogation was required.
Narang and Sodhi had claimed that they were not aware of the loans given by the PMC bank to the HDIL Group.
Opposing their pleas, the Mumbai Police's Economic Offences Wing (EOW) had said that prima facie a nexus between some of the accused and HDIL group companies has been made out by the agency.
It said the deep-rooted conspiracy caused loss of public funds.
The agency said that six people have lost their lives due to loss of money and the public is protesting over the irregularities.
The police has so far arrested five persons, including promoters of the realty group HDIL and top bank officials, in the case.