Sick, infirm can be granted bail under PMLA: Supreme Court

Mulchandani, the ex-chairman of the Seva Vikas Cooperative Bank who is linked to alleged fraud and misappropriation of funds, had filed an application seeking bail on medical grounds, which was dismissed by the Bombay High Court in August 2024. He then moved the apex court seeking relief.

New Delhi: The Supreme Court on Monday said if someone is sick and infirm, he should be granted bail even though the Prevention of Money Laundering Act is stringent law and the judges’ would have to operate within the four corners of the law.

A bench of Chief Justice of India DY Chandrachud and Justices J B Pardiwala and Manoj Misra granted interim bail on medical grounds to Amar Sadhuram Mulchandani, the ex-chairman of the Seva Vikas Cooperative Bank, in a case linked to alleged fraud and misappropriation of funds of the lender worth Rs 429 crore.

67-year-old Mulchandani was arrested on July 1, 2023.

Senior advocate A S Nadkarni, appearing for an intervenor, contended that the accused was facing four FIRs registered by the Enforcement Directorate for tampering and destroying the evidence.

At this juncture, the bench said, “Howsoever, stringent the PMLA is, we as judges have to operate within the four corners of the law”.

The bench relied upon a report filed by a board of four expert doctors of the JJ Hospital, Mumbai.

The court also noted that Mulchandani has been behind bars for over a year.

“The law tells us that someone, who is sick and infirm, should be granted bail...you know that point that he can be treated in a government hospital is no answer to what the statute says…look we had an evaluation by government medical college," the bench told Nadkarni.

Mulchandani filed an application seeking bail on medical grounds, which was dismissed by the Bombay High Court in August 2024. He moved the apex court seeking relief.

The bench noted the notice was issued on September 2, 2024.

On October 4, the direction was issued for a fresh medical evaluation of the petitioner at JJ Hospital, Mumbai. A report of October 10, 2024 has been submitted.

“The proviso to Section 45 (1) of the PMLA, specifically contemplates that a person, who is sick or infirm, may be released on bail if the special court so directs. Based on the medical evaluation provided by the medical team. It is evident that the petitioner fulfills the threshold required for being enlarged on bail,” the bench said in its order.

The court directed the petitioner to be released on interim bail subject to terms and conditions imposed by the special court.

Mulchandani and others faced the money laundering case after multiple FIRs were registered by the Pune Police based on complaints of the bank and the audit conducted by the Registrar of Cooperative Societies pointing towards a large-scale fraud and misappropriation of public funds causing a loss of Rs 429 crore to the Seva Vikas Cooperative Bank causing loss to thousands of small depositors.