Although police sought 15-day custody of the accused, 11th Additional Chief Metropolitan Magistrate Court Judge Jyothishree also remanded them to its custody till May 22.
A police team arrested the trio on Thursday from Arcot village in Tamil Nadu's Vellore district and were brought to the city earlier on Friday.
A civil court had issued an arrest warrant against the accused last month after police seized demonetised currency notes with the face value of Rs 14.8 crore from Nagaraj's house during a pre-dawn surprise raid on April 14.
The money-laundering case was registered against the accused under Section 7 of the Specified Bank Notes (Cessation of Liabilities) Act. 2017.
Meanwhile Bengaluru Commissioner of Police Praveen Sood announced Rs 2 lakh reward to the team for nabbing the accused who were on the run for 27 days to evade arrest.
A local court on May 5 also rejected Nagaraj's anticipatory bail application he filed through his lawyer on April 17, fearing arrest for allegedly exchanging the demonetised notes with new notes on a hefty commission.
Nagaraj, 54, was an independent corporator of the Bengaluru City Corporation from the Prakashnagar civic ward in the city's western suburb from 2002 to 2007.
Police also registered a case under Sections 189 (threat of injury to public servant) and 501 (printing or engraving matter known to be defamatory) of the Indian Penal Code against him.
(This story has not been edited by Social News XYZ staff and is auto-generated from a syndicated feed.)
About VDC
Doraiah Chowdary Vundavally is a Software engineer at VTech . He is the news editor of SocialNews.XYZ and Freelance writer-contributes Telugu and English Columns on Films, Politics, and Gossips. He is the primary contributor for South Cinema Section of SocialNews.XYZ. His mission is to help to develop SocialNews.XYZ into a News website that has no bias or judgement towards any.