Bombay High Court on Wednesday rejected the anticipatory bail plea of suspended sub-inspector of police Daya Nayak and his associate Rajendra Phadte in a disproportionate asset case.
It, however, granted bail to Nayak's wife Komal at a sum of Rs 25,000.
The court also stayed arrest of Nayak and Padte for seven days as they sought time to surrender.
The court ordered that in the event of Nayak's arrest, he be kept in a separate cell in view of threats to his life from gangsters lodged in prison.
His lawyer Sirish Gupte argued that Nayak had killed several gangsters in encounters and handed over two sealed envelopes containing transcript of telephonic conversations revealing threats to his life.
Their lawyer assured that both would surrender before the anti-corruption bureau within seven days and the court considered their plea.
The school that Daya Nayak built
Nayak argued that he had been falsely implicated in the case by rivals in police department and that there was no need for a custodial interrogation. Komal and Padte also said they were ready to cooperate with investigations and hence their custodial interrogation was not required.
Nayak has been accused of amassing assets disproportionate to his known sources of income.
The high court had on Monday deferred the anticipatory bail plea of suspended encounter specialist, his wife and associate Rajendra Padte in the case as arguments had been inconclusive.
The state of Maharashtra, opposing their bail plea, had contended that the Anti-Corruption Bureau needed custodial interrogation of Nayak and others, and submitted that there was prima facie evidence against them.
Nayak, Komal and Padte argued that their custodial interrogation was not required and that they had been falsely implicated in the case.
Komal and Padte have been charged with helping Nayak in laundering the money.
A special court had earlier rejected the anticipatory bail pleas of the accused.
Nayak shot to fame through his encounters, wherein more than 50 persons belonging to underworld gangs fell to his bullets during his posting in the Mumbai Crime Branch.
However, he was shunted out of the Crime Branch last year following the allegations against him.
With PTI inputs