The Supreme Court on Friday cancelled the bail granted to Hasan Ali Khan by the Bombay High Court.
A bench of justices Altamas Kabir and SS Nijjar passed the orders cancelling the bail when Enforcement Directorate moved to the apex court.
Hasan Ali Khan is accused of money laundering.
The ED, in its petition, alleged various transactions led by Khan through his foreign bank accounts, revealing his association with international arms dealer Adnan Khashoggi.
The court had earlier reserved the orderon the petition filed by ED challenging the August 12 order of the Bombay High Court granting bail to Khan.
It has been contended that government had sufficient evidence toprove that Khan had several foreign accounts and illegal money to the tune of over $93 million stashed abroad.
Khan is also accused of holding two forged passports and ED had contended that granting bail would help him flee from the country.