A bench of Justices N V Ramana and P C Pant observed that it was "not advisable" to release Rai on bail at this stage.
The high court, in its February 14 order, had asked the lower court where the case was being adjudicated to frame charges within a month and grant bail to Rai.
Rai, one of the alleged masterminds of the scam, was arrested on June 11, 2016.
He was running a college in Vaishali and it was alleged that undeserving students appearing at intermediate exams from there were made state toppers in connivance with Bihar School Examination Board 's then chairman Lalkeshwar Prasad Singh and others.
Lalkeshwar's wife and former JD(U) MLA Usha Sinha is also one of the prime accused in the scam.
The special investigation team, constituted to probe the scam, had chargesheeted against 32 accused, including Rai.
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