Khalil Ahmed, an alleged aide of underworld don Dawood Ibrahim, was on Monday refused bail by a Delhi court in a 2009 case of alleged attempt to extort money from a businessman in New Delhi.
Chief metropolitan magistrate Vinod Yadav denied bail to Ahmed.
Khalil had sought bail on the ground that the Indian Penal Code provides a maximum punishment of seven years for the offence of extortion and he has spent a substantial period in judicial custody, pending trial.
His counsel also said argued all the prosecution witnesses in the case have already been examined and there is no likelihood of Ahmed threatening any witness.
The court, however, noted the argument of the prosecution that Khalil was not given bail in December, 2011, by a sessions court which had considered the merits of the case, his conduct and the societal impact that is going to be caused if he is granted bail.
"I find substance in arguments of the prosecution that although the accused has undergone substantial sentence as an undertrial, his bail was dismissed by the sessions court on merits," the CMM said.
The court also noted the submission of the prosecution that Khalil's conduct inside the jail was not acceptable and it could only be imagined what he may resort to if he is granted bail.
Businessman Qmar Ahmed had alleged that on February 16, 2009, when he was in his shop with his partner, two persons came and handed over a mobile phone to him forcing him to speak to Khalil. Khalil allegedly demanded Rs 10 lakh as extortion money and threatened to kill him and his family if his demand was not met.
Khalil was booked under stringent MCOCA on the charge of running an organised crime syndicate but was absolved of the charge by the sessions court and the Delhi high court.
The police had accused him of being involved in 34 cases of extortion, dacoity, kidnapping, murder, intimidation and attempt to murder from 1985 to 2009.