Rs 429.57 Crore Bank Fraud: Special Court Grants Bail to Amar Mulchandani Citing Health Issues

In a significant development, the special Prevention of Money Laundering Act (PMLA) court on Monday granted bail to Amar Mulchandani, the former chairman of Seva Vikas Co-operative Bank (SVB). The court considered his severe health issues, including a 60% permanent disability, and the likelihood of delays in the trial as key factors for its decision.
Arrest and Allegations
Mulchandani was arrested on July 1, 2023, for allegedly defrauding the bank of ₹429.57 crore. The Enforcement Directorate (ED) accused him of orchestrating a large-scale financial scam that severely impacted the bank’s operations.
Health Concerns Presented in Court
Mulchandani’s lawyer, Dr. Sujay Kantawala, argued that his client’s medical condition warranted bail. The lawyer highlighted that Mulchandani had suffered three cardiac arrests, including a recent one, and underwent bypass surgery in July 2021. Additionally, he has been diagnosed with stage 3 kidney disease, severe diabetes, and other chronic health conditions.
ED’s Opposition to Bail
The ED prosecutor, Kavita Patil, strongly opposed the bail plea, raising concerns that Mulchandani might evade legal proceedings or hinder the investigation. Patil cited a past incident involving co-accused Vinay Aranha, who allegedly helped drug lord Lalit Patil escape from custody while receiving medical treatment. The ED argued that Mulchandani could receive adequate medical care at JJ Hospital while remaining in custody.
Court’s Observations
Special Judge AC Daga, while granting bail, acknowledged Mulchandani’s deteriorating health. The court noted that he suffers from chronic kidney disease, with stage IV indicating severe kidney damage nearing complete failure. Judge Daga further referred to a certificate issued by JJ Hospital confirming Mulchandani’s 60% permanent disability.
The judge remarked, “Long periods of incarceration without the trial starting in the near future dilute the rigorous twin conditions imposed under the PMLA.”
Bail Conditions
The court granted bail to Mulchandani, taking into account his health conditions and the improbability of the trial commencing soon. However, the exact terms and conditions of the bail were not disclosed.
This decision marks a pivotal moment in the case, with the ED expected to continue its investigation into the alleged ₹429.57 crore fraud.