MOSCOW, November 30 (RAPSI) – Moscow’s Basmanny District Court on Monday refused to release Leonid Melamed, former chief of the Russian nanotechnology corporation Rusnano who stands charged with embezzlement, on 100 million rubles ($1.5 million) bail, RAPSI reports from the courtroom.

The court extended the house arrest of Melamed until March 1, 2016. However, Melamed was permitted to walk for three hours per day and communicate on the phone with his parents who live in Sochi. Earlier, he was prohibited from using any means of communication.

Investigation into the case has been extended until March 11.

Earlier, Moscow's Basmanny District Court confiscated the bank accounts of Melamed worth $ 227 million rubles ($3.4 million).

The Investigative Committee claims that Melamed illegally transferred 220 million rubles ($3.3 million) worth of budget funding, allotted to Rusnano in 2007-2009, to Alemar Co., which he controlled. Former top Rusnano managers Andrey Malyshev and Svyatoslav Ponurov are also involved in the case. The suspects pled not guilty.

Melamed is being held under house arrest and Moscow’s Basmanny District Court has ordered the detention of Ponurov.

In 2008, when the deal was being closed, Anatoly Chubais had already replaced Melamed, corporate sources said. They added that Melamed had not inflicted any losses on the company and promised to cooperate with law enforcement agencies.

Earlier, Minister for Open Government Affairs Mikhail Abyzov said the buzz around this case would negatively affect the national business climate and the investigation itself.