Gadkar's lawyer Amit Desai argued that the investigation was over and police did not need Gadkar's custody any longer.
If she was kept in jail, it would amount to subjecting her to pre-trial punishment, he said.
The senior counsel conceded that it was a serious case and the accused must be thinking "if she could turn back the clock".
Desai said the charge of culpable homicide not amounting to murder was not applicable and the police should have instead imposed section 185 of Motor Vehicle Act which deals with drunken driving.
"She reached police station next morning at 8 am, so there is no chance that she would run away," Desai argued.
Police had already recorded the statements of the witnesses before the magistrate, so she could not influence them, he said.
But prosecutor Pralhad Mahajan said it was a serious offence and the magistrate can't grant bail in such a case.
Some of the witnesses were friends of the accused and live in the vicinity and hence she would tamper with evidence if released on bail, he said.
In the early hours of June 10, the Audi driven by Gadkar rammed a taxi on Eastern Freeway, resulting in the death of two people inside the taxi including the driver.
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