Additional Sessions Judge Sidharth Sharma denied the relief to Shah, who is currently in judicial custody, after the Enforcement Directorate (ED) said that he was not needed for further custodial interrogation.
On August 3, the court had allowed the ED custody of Shah after the agency alleged that he was "ruining" the country by using money to fund terror.
Shah was arrested by the ED a day after several Hurriyat leaders were taken into custody of the National Investigating Agency (NIA) in a case of alleged terror funding in the Valley to fuel unrest.
The agency had earlier issued summonses to Shah in the case, the prosecution had said, adding that Wani had claimed that he had given Rs 2.25 crore to Shah.
Investigating agencies like the NIA have cracked down on Hurriyat leaders like Syed Ali Shah Geelani's son-in-law -- Altaf Ahmed Shah, also known as Altaf Fantoosh -- and six other Kashmiri separatists.