PMLA Court grants bail to Amar Mulchandani

A PMLA court granted bail to Amar Mulchandani, ex-chairman of Seva Vikas Bank, due to his severe health issues and trial delays in a ₹429.57 crore fraud case.

MUMBAI: A special Prevention of Money Laundering Act (PMLA) court on Monday granted bail to Amar Mulchandani, former chairman of Pune-based Seva Vikas Co-operative Bank accused of ₹429.57 crore banking fraud on grounds of his medical condition AND DELAY IN COMMENCEMENT

PMLA Court grants bail to Amar Mulchandani

In October 2022, Reserve Bank of India cancelled the license of Seva Vikas Co-op Bank. An ED probe revealed that the former board of directors violated banking norms by sanctioning loans to ineligible entities in return of 20% kickbacks, leading to losses around ₹429.57 crores. Following this, Mulchandani was arrested by the ED.

Mulchandani is diagnosed with kidney ailment stage 4, diabetes, and 60% permanent disability. Seeking bail, advocate Sujay Kantawala submitted for bail as the accused is suffering from various ailments and there is no possibility of trial beginning anytime soon. Medical reports submitted by the superintendent of Sir JJ Group of Hospital showed he suffered from various diseases, which has become chronic and uncontrollable over time.

The special public prosecutor Kavita Patil argued that Mulchandani might evade the process of law if he is released on bail. She added that he does not have any life-threatening disease, and his treatment could be done in Sir JJ Hospital in custody.

“The nature of ailment is much more important to arrive at a conclusion, as to whether the person is entitled to be released on bail or not”, special sessions judge AC Daga said. He added that Mulchandani has 60% disability and that if his kidney disease reached stage 5, there is a high possibility for it to stop functioning. As a sick person, he is entitled to the provisions under section 45(1) (granting bail to certain categories of people without meeting the strict conditions for bail) of the PML Act.

Pointing out the long period of incarceration, the judge said Mulchandani has already been in custody for 18 months. On the grounds of his health and the inordinate delay in the commencement of the trial, the sessions court granted bail to Mulchandani.