Sarat Patra was arrested during the day after marathon grilling yesterday.
Patra was arrested on the basis of the statement by a woman, police said but did not elaborate.
Sub-divisional judicial magistrate P K Routray rejected his bail plea and allowed the police three-day remand for further interrogation.
It is believed that Patra looked after management and financial activities of Sarathi ashram here.
Patra, a teacher at a government school, was placed under suspension earlier this month on charges of dereliction of duty after the arrest of Sarathi on charges of cheating.