The Cuttack District and Sessions court turned down the bail plea of Mishra in connection with the blast which took place near Press Square in Cuttack in 2013 leaving two persons injured.
Mishra, now in judicial custody, will be produced in the court after 14 days.
The SDJM court last week rejected the industrialist's bail plea prompting his counsel to move the district and sessions court.
Although the case was closed in 2014, the city police reopened it following the arrest of the industrialist by Paradeep police one month ago in connection with another case, a murder case in 2016 in which he was named as an accused.
"The city police is trying to reinvestigate the old cases only to drag my client Mahimananda Mishra into it," Mohapatra said.
The police argued Mishra cannot be granted bail at this stage for the sake of probe.
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