Special CBI judge Pradeep Chaddah remanded Dimple in judicial custody till October 17.
Dimple, who is also the Vice-President of SAD (Badal) had surrendered before CBI on September 27 after evading arrest for two weeks and being refused anticipatory bail by the court.
Dimple is a Councillor from Sant Garh in west Delhi's Tilak Nagar and is accused of pressurising Santokh Singh, a builder in his constituency, to pay Rs 2 lakh for raising a structure or else he will get it demolished by MCD officials.
Complainant Santokh Singh had also written to the police seeking protection alleging that he had received a telephone call from Dimple Chadha while he was absconding and was threatened to withdraw his complaint.
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The court, while rejecting his plea for anticipatory bail on September 24, had noted Dimple had been extorting money using his muscle power and misusing the armed police guards provided by Punjab Police.
The judge was also told by the complainant that Dimple collects Rs 1,000 from each property dealer in the event of rallies and even wahsermen in the area are forced to pay Rs 300.
The court's attention was also brought to the complaints registered against Dimple for threatening one Vikram Vinayak and also Yashpal Arora, director of Hyundai Service Station in his area.