Tokyo court rejects to extend detention of Carlos Ghosn

A Tokyo court rejected a request from prosecutors to extend Carlos Ghosn’s jail detention, giving the former Nissan Motor Co. chairman a chance to seek bail and fight allegations of under-reporting of his income.

Carlos Ghosn’s lawyers said they plan to apply for bail, and the car titan could be out as soon as Friday if the request is approved. Still, the prosecutors have the right to appeal against the district court’s decision.

Ghosn has been charged with financial misconduct - accused of under-reporting his pay package over a five-year period.

His detention could have been extended on separate charges until 30 December.

The Tokyo district court also rejected an extension for Carlos Ghosn aide Greg Kelly, who was also detained on the same day.

“The chances of bail are very high,” said Nobuo Gohara, a lawyer and former prosecutor. “To begin with, this isn’t a case that should need such a lengthy detention.”

Ghosn, a towering figure in the auto industry, has previously denied the accusations made against him.

His defense team has said they are invalid because they do not relate to his salary, but to future payments that he was expected to receive after retirement.

Japanese prosecutors have also charged Nissan in relation to the case, which has continued to send shockwaves through the global car industry.

If Ghosn is convicted, the charges could mean up to 10 years in prison. The charges also carry a fine of up to 700m Japanese yen ($6.2m; £4.9m), according to the Japanese regulator, the Securities and Exchange Surveillance Commission.

Ghosn's detention has also put into doubt the future of the Alliance - a global carmaking group that includes Renault, Nissan, and Mitsubishi.

Nissan and Mitsubishi both sacked Ghosn as chairman after his arrest last month.

But Renault has held off doing so, choosing instead to appoint a temporary deputy chief executive to take over the running of the firm.