The Central agency sought 14-day remand of Pandey for interrogation, but Additional Chief Judicial Magistrate (ACJM) H S Khutwad, presiding over the CBI Court here, granted only four-day custody.
The court accepted Additional DGP's plea that he be questioned by CBI in the presence of his lawyer.
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Khutwad had reserved order on CBI plea last Wednesday after defence and prosecution counsels completed arguments.
CBI lawyer had argued that Pandey's interrogation was required to find out the real identity of two of the encounter victims, Amjad Ali Rana and Zeeshan Johar.
They were with Ishrat Jahan, a Mumbai girl, and her friend Javed Shaikh alias Pranesh Pillai, the other two victims.
After the Supreme Court rejected his anticipatory bail plea on Monday, Pandey surrendered before the CBI Court the next day and was sent to judicial custody till August 27.
He was Joint Commissioner of Police (Crime) in Ahmedabad when Ishrat and the three others were gunned down by Crime Branch sleuths on June 15, 2004.
Gujarat Police had then claimed they were terrorists, but CBI later concluded that the four were killed in a "fake" gunfight.
CBI lawyer Ejaz Khan argued that Pandey was part of a larger conspiracy and the agency needed to interrogate him to find out the role of other accused.
"The agency still has to ascertain the true identity of Johar and Rana. As Pandey had visited these two when they were kept in prior custody, his custodial interrogation is vital," submitted Khan.
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