Islamabad, March 8 (PTI): The Pakistan Supreme Court today rejected the bail appeal of Faisal Saleh Hayat, Kashmir affairs and northern areas minister, and his wife in a loan default case.

Hayat, a former Benazir Bhutto loyalist turned defector, was accused along with nine members of his family for wilfully defaulting on a loan of Pakistan Rs 241 million acquired from the State Bank in 1991.

Hayat, who defected from the Pakistan Peoples Party (PPP) in 2003 to enable the ruling Pakistan Muslim League-Quaid-e-Azam alliance to form the pro-Musharraf government, held the powerful interior portfolio till Prime Minister Shaukat Aziz took over and made him minister for Kashmir affairs.

Political analysts here see the cancellation of bail for hayat as pointer to realignment of political forces in Pakistan ahead of the 2007 polls.

Hayat was earlier probed by Pakistan?s National Accountability Bureau which is headed by military officials. According to officials, he has already reached a ?plea bargain? over clearing the loan but the case has to be decided by an anti-corruption court.