SFIO's Look Out Circular against businessman upheld amid Rs 208 crore siphoning probe citing flight risk

Delhi HC dismissed petition seeking quashing of Look Out Circular (LOC) and permission to travel abroad. Petitioner was under investigation by SFIO for allegedly siphoning Rs. 208 crores. Court noted economic offences require different approach due to deep-rooted conspiracies and threat to financial health. Given petitioner lacked roots in country, investigation at crucial stage, and flight risk concerns, HC upheld LOC dated 13.06.2022, finding SFIO's apprehension of non-return justified under MHA guidelines.

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Issues Involved:
1. Denial of permission to travel outside India.
2. Quashing of Look Out Circular (LOC) dated 13.06.2022.

Summary:

1. Denial of Permission to Travel Outside India:
The petitioner, a 75-year-old British citizen and Overseas Citizen of India (OCI) cardholder, was denied permission to travel outside India. She filed W.P.(C) No. 13057/2022 under Article 226 of the Constitution of India, seeking reasons for this denial and copies of related orders or circulars. The petitioner was intercepted at the Delhi airport on 18.08.2022 and informed about the revocation of her travel permission. Despite making representations to the respondents, she remained unaware of the proceedings against her, leading to the filing of the writ petition.

2. Quashing of Look Out Circular (LOC) dated 13.06.2022:
The petitioner also filed W.P.(C) 14757/2022 to quash the LOC issued by the Serious Fraud Investigation Office (SFIO) on 13.06.2022. The LOC was issued in light of an investigation initiated by the SFIO based on an order dated 09.03.2022 by the Ministry of Corporate Affairs. The investigation involved the affairs of Net4 India Limited and its subsidiaries. The petitioner suffered a cardiac arrest on 19.09.2022 and underwent medical treatment, which she cited as a reason for needing to travel abroad.

Court's Observations and Decision:
The court conditionally allowed the petitioner to travel abroad on 09.11.2022, subject to compliance with specific conditions, including providing bank account details and appointing an authorized representative to cooperate with the SFIO. However, the petitioner failed to fully comply with these conditions, leading the court to observe non-cooperation on her part. The court noted that the petitioner did not provide bank account statements beyond a two-year period and appointed a representative with insufficient knowledge to assist the SFIO.

The court emphasized the seriousness of the economic offences involved, amounting to Rs. 208 crores, and the petitioner's alleged role in siphoning off funds. The court also noted that the petitioner's son, a co-accused, was absconding and that the petitioner lacked roots in India, raising concerns about her potential flight risk. The court referenced guidelines from Sumer Singh Salkan vs. Assistant Director & Ors. and Office Memoranda issued by the Ministry of Home Affairs regarding the issuance of LOCs.

Conclusion:
The court concluded that the petitioner had not cooperated with the investigation and that allowing her to travel abroad posed a significant flight risk. Therefore, the court dismissed the petitions and upheld the LOC dated 13.06.2022, preventing the petitioner from traveling outside India.

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