Seva Vikas Co-operative Bank fraud: HC refuses bail on medical grounds to Amar Mulchandani

Bombay HC rejects medical bail plea of ex-bank chairman arrested for defrauding ₹429.57 crore, directs hospital admission for treatment.

MUMBAI: The Bombay high court dismissed the medical bail plea filed by Amar Mulchandani, the former chairman of Seva Vikas Co-operative Bank, who was arrested by the Enforcement Directorate (ED) for allegedly defrauding the bank of ₹429.57 crore. The court, however, directed superintendent of the Arthur Road to admit him to JJ Hospital, as an indoor patient for two weeks of treatment.

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On July 1, 2023, Mulchandani was arrested by the ED on charges of financial malpractice during his tenure as chairman of the Pune-based Seva Vikas Cooperative Bank. The ED alleges that between 1997 and 2003, as well as from 2009 to 2020, Mulchandani was involved in the illicit generation and layering of criminal proceeds totaling ₹429.57 Crore.

In his plea to the high court, Mulchandani asserted that he had a known case of severe diabetes mellitus and heart disease Post-arrest, his health has significantly deteriorated. Mulchandani highlighted inadequacies in the diagnosis and treatment provided both at the prison hospital and Sir JJ Group of Hospitals. He emphasised the worsening of his health over the preceding months. Seeking bail on grounds of being “sick and infirm,” Mulchandani underscored the urgency of his medical condition.

ED opposed Mulchandani’s bail plea, claiming that his health condition was not such that he deserved to be released on bail. The agency further stated that he suffered from ailments that can be treated at government hospitals.

Justice NJ Jamadar accepted the arguments advanced by advocate Hiten Venegaonkar on behalf of ED, noticing that the clinical examination of the accused did not reveal any significant abnormalities in cardiovascular, respiratory, and abdominal health.

The judge said Mulchandani primarily suffered from diabetic retinopathy resulting in diminished vision in both eyes and neuropathy. “Undoubtedly, the chief medical officer has referred to difficulties which the applicant faces in prison in his daily pursuit and to state that the applicant is not sick would be audacious,” the judge said.

Regarding Mulchandani’s neurological issues, the court noted that he has been prescribed medication for neuropathy along with intensive physiotherapy, necessitating regular follow-ups. Given this medical background, the court dismissed his bail petition on the basis of being “sick and infirm,” asserting that there was currently no need for surgical intervention.