A division bench of Justice Ashutosh Mohanta and Justice D Seshadri Naidu dismissed the DGP's 'house motion'.
Based on a complaint filed by senior IPS Officer Umesh Kumar, the Supreme Court had ordered a CBI probe against Reddy for allegedly amassing disproportionate assets along with his wife on September 6.
The apex court had also criticised the AP state government for not probing Reddy when a copy of the complaint against him was forwarded by the Centre.
Reddy is to be superannuated on September 30.
On September 26, the AP state government rejected his representation in the case, after which Reddy filed an application with CAT seeking interim relief to continue for another year.
However, the CAT bench too rejected his interim relief application.
Reddy had said that Supreme Court's directions are specific that an appointee to the post of a DGP should have been in office for a minimum period of two years, from the date of his appointment, irrespective of the date of superannuation.
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