The Lahore High Court on Tuesday rejected bail applications filed by PML-N leaders Khawaja Saad Rafique and Khawaja Salman Rafique in a corruption case.

A two-member bench, headed by Justice Baqir Najafi, announced the decision.

Both brothers are chief suspects in a corruption reference filed by the National Accountability Bureau (NAB) earlier this year.

NAB has accused the Khawaja brothers of wrongfully gaining approximately Rs18.2 million from M/s Paragon City (pvt) Limited in their bank accounts and failing to account for the illegal gains.

During today's hearing, the NAB counsel told the court that the anti-corruption watchdog had initiated an inquiry against both brothers for allegedly owning assets beyond known means, but the inquiry had to be closed in 2007 after the two brothers both "won prize bonds".

"How are prize bonds related to [the inquiry]?" Justice Najafi asked.

The NAB lawyer explained that the Khawaja brothers had argued that they acquired a windfall of Rs49 million through a 'lucky' prize bond draw; therefore, it could not be subsequently proven by prosecutors that the assets they owned had been acquired through dubious means.

Both brothers are currently in judicial custody.