SC grants interim bail to ex-Chairman of Pune Cooperative Bank in ₹429 crore fraud case

The Supreme Court on Monday granted interim bail on medical grounds to Amar Sadhuram Mulchandani, the former chairman of the Pune-based Seva Vikas Cooperative Bank, in connection with an alleged fraud and misappropriation of funds worth ₹429 crore. A bench comprising Chief Justice D Y Chandrachud and Justices J B Pardiwala and Manoj Misra considered Mulchandani’s health condition, based on a report from a panel of expert doctors at J J Hospital, Mumbai. The court also noted that Mulchandani had been in jail for over a year.

Mulchandani was arrested on July 1, 2023, as part of a money laundering probe stemming from multiple FIRs filed by the Pune Police. The complaints, supported by an audit by the Registrar of Cooperative Societies, highlighted large-scale fraud and misappropriation of public funds, which led to a ₹429 crore loss to the bank, severely impacting thousands of small depositors.

According to the Enforcement Directorate (ED), the bank was run like a "family proprietorship" under Mulchandani, with loans allegedly sanctioned in exchange for massive kickbacks. Over 92% of the loan accounts had turned into NPAs, which eventually caused the collapse of the bank and the cancellation of its license by the RBI. Mulchandani and five family members were previously arrested for allegedly obstructing an ED raid in January 2024 and destroying evidence. Assets worth ₹122.35 crore, including some benami properties linked to Mulchandani, have been provisionally attached by the ED as part of the ongoing investigation.