Arvind Kejriwal could remain in judicial custody until 15 April and will be sent to Delhi's notorious Tihar jail.
Kejriwal, who has been accused of corruption, leads the Aam Aadmi party (AAP), which has governed Delhi since 2015 and is part of an opposition alliance that came together to fight the prime minister, Narendra Modi, and the ruling Bharatiya Janata party (BJP).
The court ruling will keep Kejriwal behind bars at a crucial time of campaigning for AAP and the opposition coalition, just before the national elections, which will begin on 19 April, when Modi will seek a third term in power.
Kejriwal was dramatically arrested at his home two weeks ago, the first time a sitting chief minister (head of government for the region) has been detained.
He stands accused of being a "kingpin" of an alleged scam by his government to receive about ibn rupees (£9.5m) from corrupt deals and kickbacks from a new alcohol licensing policy.
This is the third extension that the courts have granted to the enforcement directorate (ED), the central government agency leading the investigation, to keep Kejriwal behind bars.
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