A Mumbai court on Thursday rejected the bail application of publisher of Business India magazine and a former director of Jai Hind Co-operative Bank Ashok Advani and remanded him to police custody till December 23.

Additional Metropolitan Magistrate B A Shelar remanded Advani -- who was arrested last night over alleged charges of swindling bank money to the tune of Rs 27 crore (Rs 270 million) -- to police custody but allowed him home food and medicine.

• Business India publisher arrested

Advani was the director of the bank when it accumulated non-performing assets and allegedly defaulted payments to its small-time depositors and to the charitable trust, Hyderabad (Sind) National Collegiate Board.

The bank is under liquidation following Reserve Bank of India's recommendation to the Maharashtra government.