Former Seva Vikas Co-operative Bank Chairman Denied Bail On Medical Grounds By Mumbai PMLA Court

Mumbai: The special PMLA court rejected the plea of the former chairman of Seva Vikas Co-operative Bank, Amar Mulchandani, for bail on medical grounds after the Enforcement Directorate (ED) claimed that it's nothing but a trick to get out of custody. The ED said Mulchandani has been resisting treatment at JJ Hospital but is trying to shift to a private hospital in Pune.

The special judge, MG Deshpande, said, "It has to be noted that the applicant (A4) has been trying to get himself admitted to a private hospital in Pune (not in Mumbai), nor is he ready to undergo the processes proposed by Sir JJ Hospital, but is making capital of his illnesses only." Besides, the court said once Mulchandani is admitted to a private hospital in Pune, there is no guarantee when he would be discharged.

What is the case about?

Mulchandani was arrested on July 1, 2023, on charges of money laundering. The bank's audit revealed misappropriation of funds amounting to Rs 429.57 crore, involving 124 loan accounts that had turned into non-performing assets (NPAs). It was claimed that while Mulchandani was chairman, his family members were directors of the bank along with some borrowers. The board gave loans to several people out of favor who defaulted on repayment.

While his plea for release on the grounds of illegal arrest is pending with the Bombay High Court, Mulchandani moved the special court for bail on medical grounds.

The defence claimed that Mulchandani's condition is bad, and he is having difficulty standing on his feet and walking, with his health continuously deteriorating due to severe diabetes and heart ailments. Besides, it was argued that he was unable to continue his eye treatment, heard ailment, and neurological ailments, and for simple procedures such as sonography, he is given appointments more than a month’s duration.

The plea was opposed by the prosecution. At the time when he claimed to have been treated in Pune, he was actively involved in various criminal activities related to the scheduled offenses whereby huge proceeds of crime (POC) had been generated by him. It is a fact, and prima-facie records with ED support the same that, in spite of such medical history and alleged illness, Mulchandani was dealing with POC.

'Jail authorities taking care of his health'

The court, while rejecting the plea, said, "All these reports, coupled with medical papers regarding treatment given to him, clearly indicate that the Arthur Road Jail Authority is promptly taking care of the health of the applicant (A4). They are scrupulously observing the schedule prescribed by the doctors at J.J. Hospital and also attending the follow-up directed by them. In none of the medical papers and various opinions expressed by experts at Sir JJ Hospital is there an indication that the illnesses of the applicant cannot be attended or treated at Sir JJ Hospital, Mumbai."

While accepting the contentions of the prosecution, the court said, "Any liberty under the guise of medical treatment in Pune will certainly accelerate the criminal activities related to the scheduled offense. ED is making further investigations. There is a possibility of the applicant dealing with POC and ultimately paralysing further investigation by the ED. Once the applicant is admitted to the hospital in Pune, no one is sure when he will be discharged. In that situation, this court would be functus officio."