Agarwal contended in his application that he was being falsely implicated in the case saying the suits were neither tested nor the state government has taken their delivery.
The court has reserved the order on the bail plea for Monday.
According to Economic Offences Wing (EOW) officials, the state police had floated a tender in January 2009 to purchase the ensemble, post the 26/11 terror attacks, as most of the suits used by various bomb detection and disposal squads (BDDS) units were outdated.
The bid was won by Techno Trade Impex India Pvt Ltd and an order for 80 suits was placed. In June 2009, the government paid about Rs six crore to the firm.
However, when the suits were supplied in 2010, the government rejected them for not being in conformity with quality standards.
Agarwal then moved the Bombay High Court in March, 2010 challenging the state government's decision.
Former principal secretary (Home) P K Jain, in an affidavit filed before the court, had claimed that Techno Trade acquired 36 bomb suits from South Africa and the remaining from China.
It was alleged that the protective gear imported from China was cheaper and of low quality, as compared to those imported from South Africa.
The 26/11 terror attack had exposed chinks in the armour of Mumbai Police in handling urban terrorism that involved sophisticated arms and ammunition.
As a part of the modernisation plan for its police force, the Maharashtra government had decided to provide better arms, equipment and protective gear like better quality bomb suits and bulletproof jackets for the personnel.
