Look Out Circulars may be sustained during ongoing money laundering investigations where departure risk and incomplete inquiry are shown.

A Look Out Circular issued during an ongoing investigation under the Prevention of Money Laundering Act, 2002 and allied penal provisions was treated as a coercive measure to secure the person's presence for further investigation. The court noted that the authorities had a statutory basis and reason to fear departure from the country, and that the enquiry was not complete despite multiple prior appearances in response to summons. On that footing, the circular was upheld and the challenge to it failed.

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Issues: Whether the Look Out Circular issued against the petitioner was liable to be quashed.

Analysis: The Look Out Circular was issued in connection with an ongoing investigation into offences under the Prevention of Money Laundering Act, 2002 and allied penal provisions. The request for issuance of the circular was supported by the apprehension that the petitioner might leave the country and evade further investigation. A Look Out Circular is a coercive measure intended to secure the presence of a person for investigation, and its issuance is justified where the investigation is continuing and the authorities have statutory basis and reasons for seeking such restraint. The Court also noted that the petitioner had already appeared for multiple summons and the enquiry was still not complete.

Conclusion: The Look Out Circular was upheld and the writ petition failed.

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