The brothers - Nissar, Abid and Jahid Khatri who are partners in FA Enterprises and Constructions company, and engineers Rajesh Rithe and Vijay Kasat - are currently in judicial custody after their arrest last month.
District Judge V V Bambarde rejected the bail applications after hearing the arguments of defence and prosecution lawyers. Advocates Sailesh Sadekar, Brijesh Jaiswar and Subash Jha represented the accused, while Sanjay Lodhe was Assistant Public Prosecutor.
The scam relates to alleged irregularities of Rs 93 crore in execution of a dam project on Balganga river in adjoining Raigad district. FA Enterprises of the Khatris had bagged the contract for the dam's construction in 2009.