Additional Sessions Judge Sidharth Sharma rejected the Enforcement Directorate's plea for extension of ED custody of Dhawan on the ground that he is required to be confronted with documents.
He was presented in the court on the expiry of his earlier two-day ED custody.
The ED alleged that he was involved in diverting the amount to purchase properties and other shell companies.
According to ED officials, Dhawan allegedly aided bank loan frauds related to the Vadodara-based Sterling Biotech company.
The ED had registered a case of money laundering following the Central Bureau of Investigation (CBI) case against Sterling Biotech, its Directors Chetan Jayantilal Sandesara, Dipti Chetan Sandesara, Rajbhushan Omprakash Dixit, Nitin Jayantilal Sandesara, Vilas Joshi and several others in connection with the bank fraud case.
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