Ex-Pune Cooperative bank chairman, accused of money laundering, granted bail

The Supreme Court on Monday granted bail to Amar Sadhuram Mulchandani, the former chairperson of Seva Vikas Co-operative Bank in a money laundering case related to a Rs 429 crore fraud and misappropriation of funds at the now-defunct lender.
The bail was granted by a three-judge bench, led by Chief Justice of India DY Chandrachud on medical grounds citing that people who are seriously ill or infirm are entitled to bail, even under the stringent provisions of the Prevention of Money Laundering Act (PMLA).
“However strict the PMLA is, we have to operate within the four corners of the law. The law tells us that someone who is sick and infirm should be granted bail. The point that he can be treated in a government hospital is no answer to what the statute says,” the bench noted.
Senior advocate Mukul Rohatgi, representing Mulchandani, argued before the bench that his client was suffering from chronic kidney disease and was unable to carry out daily activities while being incarcerated. In response, senior advocate A.S. Nandkarni suggested that Mulchandani could be admitted to a nearby hospital under custody.
However, Rohatgi countered by stating that Mulchandani, aged 67, had already been in jail for over a year and had not been named in any predicate offences.
The top court granted bail after reviewing medical reports submitted by a four-member expert committee from JJ Group of Hospitals, which confirmed Mulchandani’s deteriorating health condition.
The Enforcement Directorate (ED), which is handling the case, revealed that more than 92 percent of loan accounts at Seva Vikas Co-operative Bank had turned into non-performing assets (NPAs), leading to the collapse of the institution. The Reserve Bank of India (RBI) later revoked the bank’s license due to its financial instability.
In addition to his alleged involvement in the financial fraud, Mulchandani was also arrested by the Maharashtra Police in January for obstructing an ED raid and for allegedly destroying evidence related to the case.