A Delhi court has rejected the second bail application of RK Jain, former treasurer of the Samata Party.
Jain has been accused of attempting to accept bribe to "exercise influence" on public servants in a sting operation five years ago.
Jain was caught on camera by Tehelka news portal in its expose on corruption in defence deals.
Special Judge IK Kochhar also extended Jain's judicial remand till April 4.
Counsel for the accused had sought bail on grounds that the alleged offence was committed in 2001 when there was no possibility of the accused tampering with the evidence or fleeing from justice.
However, the court dismissed Jain' bail plea in view of the gravity of the offence for which he had been booked.
His first bail application was dismissed on March 21.
According to CBI's FIR registered in February 2005, Jain allegedly attempted to accept bribe from two scribes posing as representatives of a fictitious company.
CBI had alleged that Jain offered to exercise influence with then Defence Minister George Fernandes to participate in a technical evaluation of products for the Inian Army.
Jain, CBI alleged, also fixed up meetings between the journalists and two ministers of the erstwhile NDA government, with Rs 5 lakh and Rs 10 lakh to be paid for each meeting.
{{/usCountry}}Jain, CBI alleged, also fixed up meetings between the journalists and two ministers of the erstwhile NDA government, with Rs 5 lakh and Rs 10 lakh to be paid for each meeting.
{{/usCountry}}Tehelka, in its 2001 sting operation titled 'Operation Westend', showed various persons including government servants, defence officers, businessmen and politicians accepting bribe to obtain supply orders for defence forces.
The meetings were secretly video-taped by jornalists of the portal posing as representatives of a non-existent London firm Westend International.