A special Prevention of Money Laundering Act court in Mumbai Friday denied bail on medical grounds to Amar Mulchandani, former chairman of a Pune-based cooperative bank, in a money laundering case linked to alleged fraud and misappropriation of funds worth Rs 429 crore.

MG Deshpande, the special judge for cases under Prevention of Money Laundering Act (PMLA), on January 2 denied bail to Mulchandani after observing that any liberty under the guise of medical treatment at Pune will certainly accelerate the criminal activities relating to the scheduled offence, newswire PTI reported.