Of the thirteen persons accused in the murder that took place on November 27, twelve have been arrested so far while the MLA is still at large, police said.
The court also rejected the bail applications of six persons who were arrested in this connection.
Police have launched a search for the MLA and have taken his followers into custody for interrogation, triggering protests.
Meanwhile, TDP leaders alleged the case against the MLA has been "made up" by ruling Congress to gain political mileage.
The MLA is likely to approach the Andhra Pradesh High court for anticipatory bail, TDP sources said.