Nawab Malik had been arrested by the Enforcement Directorate in February.
A special court in Mumbai on Wednesday refused bail to former Maharashtra minister Nawab Malik in a money laundering case linked to the activities of Pakistan-based terrorist Dawood Ibrahim and his aides.
Special judge RN Rokade rejected Mr Malik's bail plea.
A detailed order will be available later.
The court on November 14 reserved his order on Mr Malik's bail plea after hearing arguments from both sides.
The Enforcement Directorate arrested the Nationalist Congress Party (NCP) leader in February this year.
He is in judicial custody and currently undergoing treatment at a private hospital in the city.
The NCP leader had sought bail, pleading there are no grounds to prosecute him for money laundering.
The probe agency, however, opposed the bail, stating the case registered by the National Investigation Agency (NIA) against Dawood Ibrahim and his henchmen can be considered grounds enough.
The ED claimed the accused was dealing with Dawood Ibrahim and his sister Hasina Parkar and "there is no question of him being innocent".
The ED's case against Mr Malik is based on an FIR filed by the NIA against Dawood Ibrahim, the mastermind of the 1993 Mumbai bomb blasts, and his aides under the India's tough anti-terrorism law UAPA.