Kejriwal was produced before Metropolitan Magistrate (MM) Gomati Manocha in a jampacked courtroom and he again refused to furnish a bail bond for his release.
The court refused to review its May 21 order remanding Kejriwal to judicial custody for not furnishing the bail bond.
"I will only request you (Kejriwal's lawyer) to challenge my order if you want. I have already made up my mind," the magistrate said, adding that court was only following legal procedure and "if other leaders of the party can furnish bond to secure bail, why Kejriwal cannot do the same".
"There is a lot of legal illiteracy in the country. Even educated people do not know about legal proceedings as to what is bail and what is bond. Being in the position you (Kejriwal) were, I expect you to be sensible," the magistrate observed.
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Kejriwal was earlier summoned as an accused by the court in the defamation complaint in which Gadkari had alleged that he was defamed by the AAP leader, who had included his name in the party's list of "India's most corrupt".
Senior advocate Pinki Anand, who appeared for Gadkari, opposed the contentions of the defence counsel saying criminal courts cannot review their order.
Kejriwal himself told the court that he was trying to understand what his fault was and lots of politicians have filed such cases against him.
"In such cases, I have been released after I gave undertaking in courts earlier," he said.