PMLA court refuses bail to Archana Kute in ₹3,545-cr Dnyanradha money-laundering case

Mumbai: A special PMLA court denied bail to Archana Suresh Kute, wife of Dnyanradha credit society founder Suresh Kute, ruling that the jail hospital could handle her medical needs just fine, even as she remains in custody over an alleged ₹3,545-crore money laundering case that has left six lakh investors in the lurch

Mumbai: A special PMLA court denied bail to Archana Suresh Kute, wife of Dnyanradha credit society founder Suresh Kute, ruling that the jail hospital could handle her medical needs just fine, even as she remains in custody over an alleged ₹3,545-crore money laundering case that has left six lakh investors in the lurch.

The Enforcement Directorate (ED) alleges that Kute, a former director of the credit society and a director and beneficial owner in several Kute Group entities, participated in laundering the alleged proceeds of crime, pegged by the prosecution at ₹3,545 crore.

Kute was arrested by the ED on March 2 and has been in judicial custody since.

Additional Sessions Judge S V Sahare rejected her bail plea on Thursday despite the defence citing serious medical conditions, including cerebral venous sinus thrombosis complicated by intracranial haemorrhage, which her lawyers said had worsened in custody.

The defence had sought relief under the proviso to Section 45(1) of the Prevention of Money Laundering Act, which permits courts to grant bail to certain categories, including women and sick or infirm persons. Her lawyers argued that she needed medical care that could not be adequately provided in custody.

Her defence had also argued that there was little reason to keep her behind bars for investigative purposes. The ED’s probe was complete and its chargesheet had been filed, they said. Since the case rested on documents such as financial transactions, bank records, property documents and accounting entries, there was no further need for custodial interrogation, the defence argued.

Opposing bail, the ED argued that Kute was not merely a passive beneficiary but an active participant in the alleged laundering operation. The agency alleged that she controlled several Kute Group entities and took part in “generating, layering and parking” the alleged proceeds of crime.

The ED’s case stems from alleged irregularities at Dnyanradha, which ran 51 branches with about six lakh investors. The court recorded that 38 FIRs were registered against Suresh Kute and other office-bearers between May and July 2024.

According to the prosecution, the society lured depositors with fixed-deposit returns of 12-14%, but funds were diverted to Kute Group companies through loans sanctioned without proper documentation.

Between March 2016 and September 2023, more than ₹2,400 crore was allegedly sanctioned and disbursed to Kute Group companies, the prosecution told the court.

The companies allegedly failed to repay the loans, turning the transactions into the central focus of the ED’s money-laundering probe.

The ED alleges that Kute, who was a former director of the society and is a director, shareholder and beneficial owner in several Kute Group entities, benefited from the alleged proceeds of crime.