Judge V Ramasamy rejected the bail plea after hearing the CBI, the defence counsel and the directors of Paazee.
The CBI opposed the bail plea saying Kumar may influence his official position and tamper with the evidence.
CBI had yesterday filed a charge sheet running to 14,000 pages in the case under Tamil Nadu Protection of Interests of Deposits (TNPID) (Financial Establishments) Act-1997 against three directors of Pazee Forex -- K Kathiravan, K Mohanaraj and Kamalavalli.
The prosecution had contended that the trio had duped around 43,000 investors across the country promising them high returns in Forex Trade in 2009.
Charges were framed against them under IPC section 420 (cheating) and 120 (B) (punishment of criminal conspiracy), Sec 4 of the Prize Chits and Money Circulation schemes (banning) Act-1978 and Section 5 of the TNPID Act.
TNPID Court special judge M Sreenivasan served copies of the charge sheet to the three, who were lodged in the Central Jail here.
More From This Section
The case against Kumar would be treated as a separate one.
Kumar, then IGP (West Zone) here when the case was registered, was arrested in New Delhi on May 2 on the charge of entering into a conspiracy to get a bribe of Rs 10 crore from Paazee Forex Trading company for protecting its directors facing charges of duping depositors to the tune of Rs 826 crore in 2009.
He was remanded to judicial custody by CBI Court and lodged in the Central Prison here till May 17.
CBI has charged Kumar with abusing his official position and making his subordinates and accomplices extort money from Paazee Group of companies to safeguard its directors.
He was on the run for a long time and the Madras High Court had turned down his anticipatory bail plea last month.