The new charges allege Ghosn transferred losses exceeding $16 million from his own private investments onto the books of Nissan between 2008 and 2012, thus inflicting financial damage on the automaker, Bloomberg reported Friday.
Public broadcaster NHK said Ghosn could be released on Thursday or Friday if any appeal by prosecutors is rejected by the court and bail is granted. Aubrey Harwell, the US lawyer for Kelly, an American, says he is innocent, and that Nissan insiders and outside experts had advised him the financial reporting was proper.
It said it had also decided against extending detention for Greg Kelly, a former Nissan executive who was arrested along with Ghosn on November 19.
Other lawyers such as Tsutomu Nakamura, a former public prosecutor who is the founder of Nakamura International Criminal Defense in Tokyo, suggested that the court decision doesn't necessarily mean Ghosn may walk out of jail immediately.
"This might become a turning point that changes the impression of the special investigation department as being nearly sacred", said Yoji Ochiai, a former prosecutor who now works as a lawyer. Ghosn's lawyers declined comment on the re-arrest.
The arrest of an industry icon has triggered global attention and the scandal has raised concerns over the financial health of the Japanese automaker and the future of its alliance with Renault SA of France. He was re-arrested on December 10 for the same alleged crime covering the past three years.
Prosecutors were stunned by the Tokyo District Court's rejection of their request to extend the detention of Carlos Ghosn, with some suggesting the court caved in to worldwide criticism of Japan's judicial system. The prosecutors' allegations are now more aligned with those of Nissan, which has accused Ghosn of misusing company assets and ousted him as chair shortly after his arrest. Nissan CEO Hiroto Saikawa - a one-time protege of Ghosn - has emerged as a driving force in the carmaker's investigation into the alleged wrongdoing by Ghosn and his aide Greg Kelly, who is also indicted in the case.
So far, the new allegation only applies to Ghosn and Kelly could still be bailed out. Mitsubishi was brought into the alliance in 2016 when Nissan purchased a 34-percent stake in its domestic rival following an emissions scandal in Japan.
French car-maker Renault has so far not replaced Ghosn as CEO opting instead to put an interim governance in place.
Kyodo news agency said that when the allegation that Ghosn had shifted the paper losses first surfaced in media reports late last month, Otsuru said his client had denied it.
His arrest has sparked incredulity at Renault, which owns 43 per cent of Nissan and says it has not seen a detailed account of the charges against Ghosn. Lawyers for both men were not immediately available for comment.
Nissan has shunned demands from Renault to hold a shareholder meeting which would enable the French automaker to weigh in on Nissan's selection of Ghosn's replacement and other executive positions.