During in camera proceedings, Metropolitan Magistrate Pankaj Sharma extended the custody of Wani, who was arrested on charges of money laundering on August 6, for another six day.
He was presented before the court after the expiry of his eight-day ED custody.
Wani had allegedly confessed that he had passed on hawala money worth Rs 2.25 crore to Kashmiri separatist leader Shabir Shah.
Shah was arrested on July 25 on charges of money laundering in a case dating back to 2005 when Delhi Police Special Cell arrested Wani.
In the 2005 case lodged by the Special Cell, the court had acquitted co-accused Wani of the charges of dealing with criminal conspiracy and other offences but convicted him under the Arms Act, Khan’s defence counsel told the court.
The ED had registered a criminal case under the Prevention of Money Laundering Act (PMLA) against both. On August 9, Shah was remanded to 14 days judicial custody.