Sri Vijaya Puram, November 12: A special court has declined to grant medical bail to former Member of Parliament Kuldeep Rai Sharma in the Andaman and Nicobar State Cooperative Bank money laundering case, but has directed authorities to shift him from the District Correctional Home, Prothrapur, to Kolkata’s SSKM Hospital within five days for specialised medical treatment.
The November 10 order follows a medical assessment at G.B. Pant Hospital, Sri Vijaya Puram, which recommended that Sharma receive treatment at a higher medical centre equipped with specialised healthcare facilities. The court has also directed the concerned bank to defreeze one of his accounts, allowing funds to be withdrawn exclusively for medical treatment and related expenses.
The decision comes amid continuing proceedings in the alleged cooperative bank financial irregularities case, in which the Enforcement Directorate (ED) is investigating suspected money laundering involving former bank officials and other individuals.
Medical Review
According to the court order, Sharma was examined by a Medical Board at G.B. Pant Hospital on November 7. The board recommended that he be shifted to a higher medical centre for comprehensive evaluation and treatment.
During the November 10 hearing, Sharma’s counsel, Mohd. Tabraiz, submitted that despite the court’s earlier permission for his transfer to Kolkata for medical treatment, the correctional home authorities had not shifted him. The defence argued that the delay had affected his health and sought bail on medical grounds.
The court had, on October 9, permitted Sharma to be taken to Kolkata, preferably to SSKM Hospital or, alternatively, Apollo Hospital or an equivalent medical institution. The order specified that the airfare and medical expenses would be borne by Sharma, while the Enforcement Directorate would deploy personnel to maintain round-the-clock supervision.
The defence subsequently informed the court that Sharma was unable to arrange the required funds because his assets and bank accounts had been attached during the investigation.
The ED, however, referred to correspondence on record indicating that the prosecution had requested Sharma to communicate his travel plans in advance after the October 9 order. The correctional home authorities had also reportedly corresponded regarding the proposed transfer.
Bail Arguments
The defence relied on previous judicial decisions concerning medical bail under the Prevention of Money Laundering Act (PMLA), arguing that an accused need not be at the point of irreversible danger before the medical exception under the law can be considered.
Counsel referred to a Delhi High Court decision in *Amitabh Jhunjhunwala versus ED*, which discussed the interpretation of the expression ‘sick or infirm’ under Section 45(1) of the PMLA. The defence also cited decisions concerning the right to a speedy trial under Article 21 of the Constitution and the importance of preserving human life.
The court, however, observed that the circumstances of Sharma’s case were different from those of Sanjay Lall, who had earlier received interim bail for medical treatment. It noted that Lall was a businessman and not a bank official, whereas Sharma had served as Vice-Chairman of the cooperative bank and faced allegations of having financially benefited from its funds.
After considering the medical assessment, the nature of the allegations and the statutory restrictions under the PMLA, the judge concluded that transferring Sharma to a specialised hospital under continued supervision would address the concerns of both the defence and the prosecution.
Bank Investigation
The proceedings stem from FIR No. 14 of 2025, registered on May 15, 2025, by the Crime and Economic Offences Police Station following a complaint from the Deputy Registrar (Headquarters), Office of the Registrar of Cooperative Societies.
The FIR invoked Sections 406, 409, 420, 463, 467, 468, 471 and 120B of the Indian Penal Code against several bank officials and other individuals. The police subsequently filed a chargesheet naming 87 accused, including Sharma.
The ED initiated a parallel money laundering investigation based on these alleged offences and subsequently filed its prosecution complaint. Sharma was arrested by the police in connection with the case on July 18, 2025.
The investigation has since expanded. In a separate development reported by *The Wave Andaman* on November 11, the ED filed a supplementary prosecution complaint naming Sharma and 13 additional individuals and entities, taking the total number of accused in the money laundering case to 52.
Sharma’s earlier bail applications were rejected by the Calcutta High Court on February 10 and September 29, 2026, according to the November 10 order. A subsequent application before the Circuit Bench in July was withdrawn, with liberty sought to approach the court again after the supplementary complaint was filed.
Next Steps
The latest order does not grant Sharma bail or decide the merits of the money laundering allegations. Instead, it provides for specialised medical treatment while keeping him under judicial custody and ED supervision.
The Superintendent of the District Correctional Home, Prothrapur, has been directed to complete the transfer to SSKM Hospital within five days. The ED is required to arrange round-the-clock security, while two family members can accompany Sharma, with one permitted to stay with him during hospitalisation.
The bank must also facilitate access to one account, but withdrawals are restricted to medical treatment and related expenses.
The jail authorities have been directed to submit a compliance report by November 13, making the implementation of the transfer the immediate next step in the proceedings.
For now, the court’s decision seeks to balance the right to medical treatment with the requirements of continued custody and supervision, leaving the question of bail and the underlying financial allegations to be addressed through the ongoing judicial process.
