Hussain had surrendered before the Investigating Officer here on November 17 after the high court had rejected his anticipatory bail application.
He had filed the bail petition following the dismissal of his plea for regular bail by the Ernakulam Principal Sessions Court.
When his bail plea came up before Justice P Ubaid today, police argued that granting bail to Hussain would adversely affect the ongoing probe in the case against him.
His detention was necessary to conduct further investigation into the case, they said.
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Hussain was arrested after a case under non-bailable sections was registered by police on a complaint sent to Chief Minister Pinarayi Vijayan by victim Jube Poulose of Ernakulam here.
Poulose had alleged that he was forcibly taken to a place by a gang, where Hussain threatened him with dire consequences over a business deal.
CPI(M) has removed Hussain from the post of party's Kalamassery Area Secretary.
However, he has been retained as member of the party's district committee.