Mopidevi, arrested by CBI on May 24, is presently under judicial remand and lodged in Chanchalguda jail here.
Justice B Seshasayana Reddy who pronounced the orders observed that it is not desirable to enlarge the petitioner on bail as the CBI was still enquiring into "irregularities" committed in the Vadrevu and Nizampatnam Port Industrial Corridor (VANPIC) project.
The judge further pointed out allegation of CBI that the accused had misled the Cabinet, is not without substance.
The CBI had earlier alleged that Mopidevi, who was the then Minister for Infrastructure and Investments during YSR regime, approved the Cabinet memorandum containing proposals for awarding of the VANPIC project by withholding many important aspects related to it such as total extent of land decided for the project.
The defence had earlier requested the court for grant of bail as the CBI investigation into the allegations levelled against the former minister was now complete and a charge sheet was already filed in this regard.
According to CBI, industrialist Nimmagadda Prasad, who is VANPIC promoter, got nearly 24,000 acres of land sanctioned by AP government for the project as quid-pro-quo for investments made by him in Jagan's businesses when late Y S Rajasekhara Reddy was the Chief Minister.