Pronouncing the order, the special judge said the two conditions laid down under section 45 of the PMLA were not satisfied.
The NCP leader sought bail pleading there is no predicate offence against him to prosecute him for money laundering.
Malik, a former Maharashtra minister, was arrested on February 23 under the Prevention of Money Laundering Act (PMLA) by the Enforcement Directorate.
The senior NCP leader, who is in judicial custody, is undergoing treatment for kidney- related ailments and other health issues at a private hospital in Mumbai since May.
Malik, a former Maharashtra minister who is currently in judicial custody, was arrested on February 23 under the Prevention of Money Laundering Act (PMLA) by Enforcement Directorate.
After the arrest of NCP MLA Nawab Malik, the media wing of NCP has got crippled. Malik was skilled in giving bytes against BJP and RSS.
This is his first regular bail plea, filed on merits of the case, following his arrest in February, and the court has asked the Enforcement Directorate to file its reply to the plea by July 15.
However, a vacation bench of Justices C T Ravikumar and Sudhanshu Dhulia agreed to examine the issue relating to the interpretation of Section 62(5) of the Representation of the People Act 1951.
The Bombay High Court had on June 17 rejected the NCP leaders' plea seeking temporary release from prison for casting their ballots saying the constitutional right to vote is not absolute.
The NCP leaders are in judicial custody in separate money-laundering cases being investigated by the Enforcement Directorate.
'Right to vote not absolute': HC rejects pleas by Nawab Malik, Anil Deshmukh seeking permission to vote in Maharashtra Council poll
Their counsels Amit Desai and Vikram Chaudhri argued that while section 62 (5) fettered their clients' right to vote, the HC had 'unfettered powers to use its discretion' and grant relief.
The plea has been filed by lawyer Ashwini Updhyay through advocate Ashwani Kumar Dubey.
IPS officer Rashmi Shukla, now on central deputation, has faced allegations of tapping phones illegally and leaking a confidential report on alleged corruption in police transfers.
Deshmukh and Malik, both members of the Legislative Assembly, could not cast their vote in the Rajya Sabha elections held on June 10 after a special court refused to release them.
He was arrested by the Enforcement Directorate (ED) on February 23 this year in connection with a money laundering probe linked to the activities of fugitive gangster Dawood Ibrahim and his aides.
HC rejects Maharashtra minister Nawab Malik's plea seeking release from jail to cast vote in RS polls
Malik had sought that he be either released from custody on a bond or be permitted to go with a police escort to the Vidhan Bhavan for voting.
The lawyer of Deshmukh has requested a certified copy of the order as soon as possible so as to enable them to approach the High Court today.
All eyes on court decision about Deshmukh, Malik's plea for one-day bail to vote in Rajya Sabha polls
Also, senior BJP leader Devendra Fadnavis, who has tested COVID-19 positive a couple days ago, will have to cast his vote towards the end of the voting procedure if he continues to remain infected.
ED had opposed their bail pleas, citing that they don't have right to vote under Representation of the People Act. They will be brought to the Vidhan Bhavan at a specific time to take part in voting.
Malik was arrested by the ED on February 23 this year in connection with a money-laundering probe linked to the activities of fugitive gangster Dawood Ibrahim and his aides.