https://www.taxtmi.com/caselaws?id=406762 A Look-Out Circular must be justified by the reasons disclosed in the original request and the circular itself, and it cannot be sustained on new grounds introduced later. Here, the only stated basis was the individual's alleged directorship in the borrower-company, but the materials showed he had resigned before the fraud was detected, and no specific material established any ground under the governing office memorandum, including any economic-interest concern. The later assertion that he was also a guarantor could not cure the defect because it was not part of the original basis for issuance. The stated travel restriction was therefore unsustainable and liable to be quashed. en-us Tue, 20 Apr 2021 00:00:00 +0530 Sat, 30 Oct 2021 17:24:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=406762 A Look-Out Circular must be justified by the reasons disclosed in the original request and the circular itself, and it cannot be sustained on new grounds introduced later. Here, the only stated basis was the individual's alleged directorship in the borrower-company, but the materials showed he had resigned before the fraud was detected, and no specific material established any ground under the governing office memorandum, including any economic-interest concern. The later assertion that he was also a guarantor could not cure the defect because it was not part of the original basis for issuance. The stated travel restriction was therefore unsustainable and liable to be quashed. Case-Laws Money Laundering Tue, 20 Apr 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=406762