The prosecution had submitted before judge G V Bopaiah that it was necessary for the SIT to keep Ashwin Rao in custody for at least 14 days, to arrive at the truth.
The image of Lokayukta institution had taken a beating due to the bribery scandal and it was necessary for SIT to obtain Ashwin's custody to arrive at the truth and erase the disrepute brought to the anti-graft agency, prosecution said.
It was also submitted that the very nature of Rao's arrest raised a serious question because SIT officials were at his Hyderabad residence two and half hours earlier to the filing of the FIR.
Rao was arrested in Hyderabad yesterday in connection with the alleged extortion racket, which has led to calls for resignation of the Lokayukta who has, however, been insisting he would quit only if wrongdoing by his son was proved.