Brigadier (retd) M M Wanchoo and retired Defence Estates Officer R C Thakur had sought bail, after the judicial commission probing the scam submitted an interim report.
The commission said the land on which Adarsh society stands did not belong to army, as alleged.
However, the court refused to accept the argument that this amounted to "changed circumstances" and warranted a bail.
Earlier, the court had rejected the bail applications of IAS officer Pradeep Vyas, Major General (Retd) T K Kaul, former deputy secretary in Urban Development Department P V Deshmukh and chief promoter of Adarsh Society Kanhaiyyalal Gidwani, all of whom had sought bail on the same ground.
The scam pertains to alleged irregularities in the construction, and allotment of apartments in the 31-storey highrise, originally meant for families of Kargil war heroes, in the upmarket Colaba area in south Mumbai.
