Lookout Circular quashed for person not accused in any case despite overseas business travel needs

Bombay HC quashed LOC issued against petitioner who was not arraigned as accused in any case by EOW, SEBI, or SFIO. Petitioner, son of deceased accused, had overseas business requiring regular travel and provided undertaking to appear before trial court when summoned. Court found petitioner had roots in society, was supporting dependent family members, and had complied with previous orders. SFIO's apprehension regarding petitioner's availability was deemed invalid given his undertaking and social ties. Petition allowed with condition that petitioner abide by his undertaking dated 12th July 2024.

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Issues:
Quashing of Look Out Circular (LOC) issued by Serious Fraud Investigation Office (SFIO) against the petitioner.

Analysis:
The petitioner sought the quashing of the LOC issued against him by SFIO. The petitioner, not being an accused in the case registered by the Economic Offences Wing (E.O.W), highlighted that he has not been arraigned by SEBI in any complaints related to Pancard Clubs Limited. The petitioner cooperated with SFIO investigations and has a legitimate need to travel overseas for business purposes. The respondent, SFIO, opposed the petition, stating that the petitioner can seek permission from the court before traveling instead of quashing the LOC. The respondent alleged that a significant amount was transferred to the petitioner's account from Pancard Clubs Limited. The court noted that the petitioner's father was the accused, not the petitioner, and that the petitioner has not been arraigned in any cases. The court observed the petitioner's cooperation with SFIO and his compliance with overseas travel orders. The court emphasized that LOC should not be used indefinitely to terrorize an accused and must consider the right to travel freely under Article 21 of the Constitution of India.

The court directed the petitioner to file an affidavit undertaking to cooperate with the trial court, which the petitioner complied with. The court found the petitioner's roots in society, his cooperation with authorities, and his compliance with court orders regarding travel overseas. The court distinguished the judgments cited by the respondent and allowed the petition, quashing the LOC with specific terms and conditions. The court ordered SFIO to inform immigration authorities about the quashing of the LOC and stated that SFIO can issue a fresh LOC if necessary in the future.

In conclusion, the court allowed the petition, quashed the LOC, and imposed specific terms and conditions for the petitioner to abide by. The court emphasized the petitioner's cooperation, roots in society, and the need to balance personal liberty with the investigative process.

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