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        Money Laundering

        2022 (1) TMI 1177 - HC - Money Laundering

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        Lookout circulars require real risk of evasion; continued cooperation and no absconding basis justify withdrawal. A lookout circular is a coercive measure justified only when a person is deliberately evading arrest, ignoring coercive steps, or likely to abscond. The ...
                      Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                        Provisions expressly mentioned in the judgment/order text.

                          Lookout circulars require real risk of evasion; continued cooperation and no absconding basis justify withdrawal.

                          A lookout circular is a coercive measure justified only when a person is deliberately evading arrest, ignoring coercive steps, or likely to abscond. The petitioner had repeatedly joined the investigation, had been examined under Section 164 CrPC, had not been arrested or charge-sheeted in the matter, and had earlier travelled abroad only with court permission without misuse. On those facts, the legal basis for continuing the lookout circular was not established, and the circular was directed to be withdrawn while the petitioner remained bound to cooperate with the investigation and comply with travel restrictions in connected proceedings.




                          Issues: Whether the lookout circular issued against the petitioner could continue despite his cooperation in investigation, absence of arrest or charge-sheet, and lack of deliberate evasion of arrest.

                          Analysis: The governing principle for opening or continuing a lookout circular is that it is a coercive measure meant to secure the presence of a person who is deliberately evading arrest, not appearing despite coercive steps, or likely to leave the country to evade trial or arrest. The petitioner had joined the investigation repeatedly, had been examined as a witness under Section 164 of the Code of Criminal Procedure, 1973, had not been arrested or charge-sheeted in the concerned matter, and had previously travelled abroad only with court permission without misuse of that liberty. In these circumstances, the factual basis necessary for continuation of the lookout circular was not made out.

                          Conclusion: The lookout circular could not be continued and was liable to be recalled in respect of the petitioner.

                          Final Conclusion: The petition was disposed of by directing withdrawal of the lookout circular and by requiring the petitioner to continue cooperating with the investigation and to comply with the travel-control conditions applicable in the connected proceedings.

                          Ratio Decidendi: A lookout circular can be continued only where there is material showing deliberate evasion of arrest or a real likelihood of absconding, and not against a person who has cooperated with investigation and has not misused prior court-granted travel permission.


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                          ActsIncome Tax
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