The move comes a day after a special court in Mumbai allowed a plea of dismissed police officer Sachin Waze to turn an approver and seek pardon in the case.
Deshmukh, his two former aides - Sanjeev Palande and Kundan Shinde - and Waze were produced before special CBI judge D P Singhade at the end of their earlier remand.
A CBI team took charge of the senior Nationalist Congress Party leader Deshmukh from the Arthur Road Central Jail -- where he has been in judicial custody of the Special PMLA Court since over five months -- and placed him under arrest for further investigations.
This was Deshmukh's first regular bail petition. Earlier, the special court had rejected his plea for default bail, filed on technical ground.
The bench said the stands of the CBI and the state government are also not known as the writ petition stands decided on a threshold point of sending it to the Central Administrative Tribunal (CAT).
The agency said if Hrishikesh Deshmukh is granted protection from arrest then there is a likelihood of him tampering with evidence or attempting to obfuscate the trail of the proceeds of crime.
Last Sunday, the Bombay High Court had set aside the Special Court order granting Deshmukh judicial custody for 14 days and sent him back to the ED custody till November 12, and now extended till November 15.
"I respect the courts... I have voluntarily decided to come to the ED for the probe. But I want to ask where is Param Bir Singh who levelled the false allegations against me," said Deshmukh
The 'lookout' circular will effectively prevent Deshmukh from fleeing the country since he has skipped at least five ED summons to join the probe
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