PMLA court denies bail on medical grounds to ex-chief of Pune-based coop bank

PTI, Jan 5, 2024, 6:20 PM IST

Aspecial PMLA court here denied bail on medical grounds to Amar Mulchandani, former chairman of a Pune-based cooperative bank, in a money laundering case linked to alleged fraud and misappropriation of funds worth Rs 429 crore.

MG Deshpande, the special judge for cases under Prevention of Money Laundering Act (PMLA), on January 2 denied bail to Mulchandani after observing that any liberty under the guise of medical treatment at Pune will certainly accelerate the criminal activities relating to the scheduled offence.

The Enforcement Directorate is making further investigation as per the provision of the Prevention of Money Laundering Act and there is a possibility of the applicant (accused) dealing with POC (proceeds of crime) and ultimately paralysing further investigation of the ED, the court said in the order made available on Friday.

It further said once the applicant is admitted in hospital in Pune, no one is sure when he will be discharged, and in that situation ”this court would be functus-officio (of no further official authority or legal effect)”.

Referring to the illnesses cited by Mulchandani, the court said the state-run JJ Hospital is well-equipped with advanced machines, senior doctors and head of the departments relating to neurology, heart disease, diabetes and ophthalmic illnesses.

On treatment of gall bladder stone (cholelithiasis), the court said ”nowadays procedure can be undertaken even in a small hospital in talukas”.

The court said when JJ (hospital) doctors are ready to treat him and the Arthur Road jail authority is prompt in referring him to the hospital, in the natural course the same has to be followed.

There are absolutely no grounds to indicate the illness of the applicant is not treatable at JJ Hospital nor have the doctors there expressed their inability, opined or suggested that the applicant should be referred to a private hospital, the special judge said.

Absolutely no medical ground is made out by the applicant for grant of bail, the court said while rejecting the plea.

Mulchandani, the ex-chairman of Seva Vikas Cooperative Bank, was arrested on July 1 ,2023.

The money laundering probe against Mulchandani and others stems from multiple FIRs registered by Pune police on the basis of complaints of the bank and the audit conducted by the Registrar of Cooperative Societies which pointed to ”large-scale” fraud and misappropriation of public funds causing a loss of Rs 429 crore to the Seva Vikas Cooperative Bank and causing loss to thousands of small depositors.

The bank was ”being run like a family proprietorship by Amar Mulchandani without following any prudent banking norms and favoured loans were sanctioned in return of massive kickbacks”, as per the ED.

According to the agency, 92 per cent of the loan accounts turned into NPAs, which ultimately led to the collapse of the bank. The Reserve Bank of India later cancelled the licence of the bank.

Mulchandani and five family members were earlier arrested for ”obstructing” an ED raid against him on January 27 last year and for alleged ”destruction of evidence.” Assets worth Rs 122.35 crore, including some ”benami” properties of Mulchandani, were also provisionally attached by the agency earlier.