Special CBI Judge Vinod Kumar remanded the three accused to CBI custody till October 23 after the agency submitted they were required to be interrogated to unearth the larger conspiracy and also for recovery of certain documents.
The agency, which had sought six days police custody, said the two public servants -- Sandeep Silas and MS Chalia --were in conspiracy with arrested accused Sharan Bihari Agrawal and instead of taking Rail Neer, they had allowed some private firms to supply water in the trains which resulted in a loss of Rs 6.25 crore to the exchequer.
CBI said that accused were not cooperating in the probe and they were required to be interrogated regarding some bank lockers in and outside Delhi and also in Agra.
The agency said both the arrested public servants, despite having knowledge, had not taken any corrective steps on the issue and they were required to be questioned about the alleged investments which they have made in various companies.
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Countering CBI's argument, senior advocate Vikas Pahwa, who appeared for Chalia, told the court that his client was cooperating with the agency due to which he was not arrested on October 16 and 17 when the agency conducted the searches.
Pahwa also told the court that there was no flaw in grant of contract for supply of water and if at all there was any flaw, it was in the execution for which his client cannot be held responsible.
The counsel also argued that CBI has not given them a copy of FIR and none of the grounds given in the remand application showed that police custody of accused was needed.
Silas, a 1984-batch Indian Railway Traffic Service(IRTS) officer, and Chalia of 1987 batch officer were taken into custody on Saturday night along with Agrawal, owner of R K Associates, in connection with the scam.