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The Supreme Court of India has granted bail to Amar Sadhuram Mulchandani, the former chairman of the now-defunct Seva Vikas Co-operative Bank, in a money laundering case connected to a massive Rs 429 crore fraud and misappropriation of funds. This decision was reached by a three-judge bench led by Chief Justice of India D.Y. Chandrachud, who cited Mulchandani's deteriorating health condition as the primary reason for granting bail. The court acknowledged the strict nature of the Prevention of Money Laundering Act (PMLA) but emphasized that even under its provisions, individuals who are seriously ill or infirm are entitled to bail.
Mulchandani, who is 67 years old, has been incarcerated for over a year and his legal team argued that his chronic kidney disease rendered him unable to perform daily activities while imprisoned. While the prosecution suggested that he could receive treatment at a nearby hospital under custody, the court ultimately decided in favor of bail based on the medical reports submitted by a four-member expert committee from JJ Group of Hospitals. These reports confirmed Mulchandani's deteriorating health status and highlighted the urgent need for specialized medical care.
The case against Mulchandani stems from his alleged involvement in the collapse of Seva Vikas Co-operative Bank. The Enforcement Directorate (ED), which is investigating the case, revealed that over 92 percent of the bank's loan accounts had become non-performing assets (NPAs), ultimately leading to the institution's downfall. The Reserve Bank of India (RBI) revoked the bank's license due to its financial instability. Additionally, Mulchandani was arrested by the Maharashtra Police in January for obstructing an ED raid and allegedly destroying evidence related to the case. This bail decision signifies a significant development in this ongoing legal battle, raising questions about the balance between legal proceedings and the right to medical care for individuals facing serious health conditions.
Source: Ex-Pune Cooperative bank chairman, accused of money laundering, granted bail