MOSCOW, August 31 (RAPSI) — Russian investigators have petitioned a Moscow court to extend until December 1 house arrest for Leonid Melamev, former chief of the Russian nanotechnology corporation Rusnano who stands charged with embezzlement.

According to a petition presented at Moscow's Basmanny District Court, there are no grounds for releasing Melamed from house arrest. His alleged involvement in the embezzlement case has been substantiated by witness testimony, forensic examination and other case materials, according to investigators. 

The investigator who presented the petition said several more examinations are underway.

Earlier, Moscow's Basmanny District Court confiscated the bank accounts of Melamed worth $ 227 million rubles ($3.3 million).

The Investigative Committee claims that Melamed illegally transferred 220 million rubles ($3.15 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 have pled not guilty.

Melamed is being held under house arrest until September 1, 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.