This is the third case in which Salem has confessed his role.
Dewani, secretary to Bollywood actress Manisha Koirala, was murdered in 2001.
Salem has challenged a chargesheet filed against him.
The application of Mumbai crime branch, seeking transfer Salem's custody has been filed with the special TADA court, which is hearing the 1993 bomb blast case.
"Charging him under MCOCA was breach of extradition conditions. That's why the government will have to drop MCOCA charges," said his lawyer Sudeep Pasbola. The trial in the case is yet to begin.
Mumbai police can prosecute Salem on two cases only.
'I wasn't interested in shackling my freedom to a Bollywood actor.' A fascinating excerpt from Lisa Ray's memoir Close To The Bone.
'Even the mafia has certain ethics and follow certain rules, but Abu Salem was so ruthless, so inhuman, there was no ethics at all. He had no basic humanity in him.' India's foremost crime writer S Hussain Zaidi on the dreaded gangster.
