2020 (3) TMI 671 - HC - Customs

Lifting of LOC issued by the 2nd respondent - Allow petitioner to travel to Singapore, Korea, United Kingdom, Europe, Bangladesh, Malaysia, Indonesia, Japan and China from February, 2020 till 31.05.2020 - crux of the contention raised by the petitioner in the counter affidavit in respect of LOC was that if the petitioner is permitted to travel abroad, it would vitiate and hamper the investigation proceedings under Prevention of Money Laundering Act - HELD THAT - Since the learned counsel for the respondents submitted that similar conditions can be imposed in this case also for suspending the LOC issued by the 2nd respondent till 31.05.2020, this Court is of the view that without expressing any view on the other conditions raised by both parties, this Writ Petition can be disposed of with conditions imposed.

Summary

Issues:
- Petitioner seeking Mandamus to lift Lookout Circular
- Allegations of financial irregularities and investigations by DRI, CBI, and EOW
- Court's consideration of LOC suspension and conditions for travel

Analysis:
1. Petitioner seeking Mandamus to lift Lookout Circular:
The petitioner, a non-resident Indian and Founder-President of a company, sought a Mandamus to lift the Lookout Circular (LOC) issued against him to travel abroad. The petitioner's company had imported coal from Indonesia, and investigations were initiated by DRI and CBI regarding alleged financial irregularities. The petitioner filed representations and applications to lift the LOC, citing cooperation with investigations.

2. Allegations of financial irregularities and investigations by DRI, CBI, and EOW:
The investigations by DRI and subsequent FIR by CBI against the petitioner for alleged offenses under IPC and Prevention of Corruption Act led to the issuance of a Lookout Circular. The petitioner challenged the LOC in court, and the CBI Court allowed him to travel abroad with specific conditions, including furnishing an FDR, providing itinerary details, and not tampering with evidence.

3. Court's consideration of LOC suspension and conditions for travel:
The High Court considered the petitioner's plea to lift the LOC issued by the 2nd respondent. Given the similar investigations by CBI and the 2nd respondent, the court decided to suspend the LOC until 31.05.2020, allowing the petitioner to travel to specific countries subject to conditions such as submitting an FDR, sharing itinerary details, and cooperating with the investigating agencies. The court emphasized that the suspension was temporary and not extendable beyond the specified period.

In conclusion, the High Court granted the petitioner relief by suspending the Lookout Circular, enabling travel abroad under specific conditions until a specified date. The judgment balanced the petitioner's right to travel with the need to ensure cooperation with ongoing investigations, providing a clear framework for the petitioner's temporary travel permissions.