HORRIFYING CCTV footage shows a teenager’s alleged rampage through Melbourne’s CBD on AFL Grand Final day.

The footage, obtained by the Herald Sun, shows alarmed pedestrians and cyclists diving out of the way of the oncoming stolen car — which was also clocked doing skids in front of Flinders Street Station and running red lights shortly before 8am on September 30.

It comes to a bizarre climax as the alleged 15-year-old driver is approached by a pedestrian carrying an oBike — who throws the bicycle under the rear of the car.

The have-a-go hero then uses his elbow to smash the stolen car’s window and the driver steps out to confront him.

WATCH: Explosive video of teen's Melbourne CBD car rampage WATCH: Explosive video of teen's Melbourne CBD car rampage

Victoria Police charged a 15-year-old Knoxfield boy with two counts of attempted murder, six counts of reckless conduct endangering life, and assaulting and resisting a police officer.

The force also allege the driver, who was wearing a helmet and dressed in camouflage gear, was armed with a knife.

However, the teenager was granted bail by a Children’s Court yesterday — prompting Victoria’s youth affairs minister to defend the state’s juvenile bail laws.

“We have made very significant reforms to the bail system. Of course, decisions are made by the judiciary in relation to particular individuals,” Youth Affairs Minister Jenny Mikakos told reporters.

Previous footage of the incident shows officers approaching the teenager and tasering him at the intersection of Flinders and Swanston streets, while others kicked away his weapon.

Bystanders were heard yelling: “Shoot him, shoot him.”

No one was injured in the rampage. One witness told the Herald Sun: “He was trying to get on the footpath and then started trying to hit people ... He tried to run into Fed Square.”

Victoria Police said the incident was not related to terrorism — saying it is related to mental illness.

The drama came on a day when the Victorian capital was packed with fans attending the AFL grand final at the MCG and amid increasing terrorism fears.

Early last year, six people were killed in nearby Bourke St during a horrific rampage when Dimitrious Gargasoulas, 26, allegedly drove his car through crowds of people. He has been charged with six counts of murder and 28 counts of attempted murder over the January 20 incident.

benjamin.graham@news.com.au or follow @bengrahamjourno on Twitter