According to prison officials, Dutt had cited poor health as the reason for extension of furlough after he was released on December 24.
The 55-year-old actor's application for extension of leave of absence was forwarded to the concerned police station in Mumbai for verification of the reason put forth by him and rejected as the police did not give a "positive" report.
"Local police has not given a positive report on granting extension. They felt that extension was not needed for his treatment which is why I rejected his plea," Rajendra Dhamane, Deputy Inspector General (Prisons) told PTI.
Earlier, Dutt's lawyer Rizwan Merchant told PTI that as his application had been rejected the actor will be surrendering before the jail authorities in Pune later in the day.
Dutt appeared to blame the "hype" created in the media for his failure to get the leave extended.
"You (media) created a hype.....That I am a celebrity (so being favoured). I am no celebrity. I have abided by the law of the land for 22 years, have abided by the jail authorities, jail manual...I am now going to surrender," he told reporters before leaving for Pune.
"No favour was done. Anyone can get furlough for a month in a year. I came out lawfully. I respect you, you should also respect me. Whatever the jail authorities have been doing is under the law," he said.
Media reports suggested that Dutt, convicted in the 1993 Mumbai blasts case, had been getting preferential treatment by way of frequent leave of absence which was not being extended to others co-convicts.
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