Two Canberra men faced the ACT Magistrates Court on Friday accused of blackmailing and threatening a man after a dispute over "missing" drugs.
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It's alleged Barry Avery, 34, and Cameron Sharp, 20, together committed the offences over several hours in Palmerston on April 9.
Police arrested the pair at a home in Palmerston on Thursday.
They were kept in custody after separate appearances in court.
Mr Sharp appeared first and did not apply for bail. Mr Avery appeared second and applied for bail, which was opposed by prosecutors.
The prosecutor said that the risks of Mr Avery reoffending while on bail, of interfering with evidence and intimidating witnesses were too great.
Mr Avery's Legal Aid duty lawyer conceded the allegations were serious.
But he said Mr Avery denied parts of the police statement, including that MDMA police found was in his possession. The lawyer also said the extent of Mr Avery's involvement in the alleged offences will be heavily disputed.
Arguing against his release, the prosecutor described the allegations as a sustained attack over drugs that had gone "missing", in which a man was taped to a chair, beaten and water boarded.
It's alleged scissors were held to the victim's throat and Mr Avery threatened the man and his family, she told the court. The terrified victim had moved interstate, and police were still collecting evidence and witness statements.
Magistrate Robert Cook refused the man bail.
Mr Avery, from Palmerston, is facing charges of forcible confinement, blackmail for a gain of $3000 and a car, trafficking MDMA, trafficking cannabis and unlawful possession of stolen property - $785 in cash.
The co-accused Mr Sharp, from Higgins, has been charged with forcible confinement, blackmail for a gain of $3000 and assault.
Neither man entered any pleas.
Both matters have been adjourned to May 26.
