In a significant development, the Supreme Court on Monday granted interim bail on medical grounds to Amar Sadhuram Mulchandani, the former chairman of Seva Vikas Cooperative Bank, Pune, who is embroiled in allegations of fraud and misappropriation of funds.
The decision was made by a bench consisting of Chief Justice D.Y. Chandrachud, and Justices J.B. Pardiwala and Manoj Misra, after careful examination of Mulchandani’s medical reports submitted by a board of four expert doctors from J.J. Hospital, Mumbai. The top court noted Mulchandani’s deteriorating health, acknowledging his over a year-long incarceration.
Mulchandani has been a central figure in a probe into the laundering of Rs 429 crore from the Seva Vikas Cooperative Bank, resulting in substantial financial losses to thousands of small depositors. The allegations suggest that the bank operated more like a family-run business without adherence to standard banking regulations, where loans were approved in exchange for substantial kickbacks.
Further complicating matters, the Enforcement Directorate (ED) highlighted that over 92% of the bank’s loan accounts had turned non-performing assets (NPAs), pushing the bank towards failure. Consequently, the Reserve Bank of India (RBI) had to step in and revoke the bank’s license due to these financial irregularities.
In addition to the economic offenses, Mulchandani and five family members were arrested by Maharashtra Police for allegedly obstructing an ED raid and destroying evidence on January 27. The ongoing investigation also led to the provisional attachment of assets valued at Rs 122.35 crore, purportedly belonging to Mulchandani, including several properties held under benami names.
