Judge Swapna Joshi refused bail to Khan -- accused among other things of having USD 8 billion in Union Bank of Switzerland -- as Enforcement Directorate (ED) said there was overwhelming evidence against him in the case under Prevention of Money Laundering Act.
Khan's lawyer advocate Amit Desai argued that ED had suppressed certain important documents from the court, which would have proved that the charges were baseless and he had never laundered money.
ED's lawyer, advocate Ujjwal Nikam, denied this allegation.
Khan had obtained five passports in different names and had transacted huge amounts in Swiss banks. There was a possibility that he may abscond if granted bail, Nikam said.
Khan is also under the scanner for alleged terror links, as he is suspected to have laundered money of international arms trader Adnan Khashoggi.
Khan's earlier bail application had been rejected by the sessions court last year, after which he got bail from the Bombay High Court. However, Supreme Court later cancelled it.
This time he had sought bail on the ground of the alleged suppression of documents by ED.