Familial association with an accused is not sufficient to justify Look Out Notice
Delhi High Court Quashes Look Out Circular Against British Citizen. Court Rules Familial Association and Conjecture Insufficient for Issuance of LOC; Permits Return to UK
In a significant judgment, the Delhi High Court has quashed the Look Out Circular (LOC) issued against Puja Chadha, a British citizen of Indian origin, allowing her to return to the United Kingdom. The court observed that familial ties with an accused and speculative grounds do not justify the issuance of an LOC.
The petitioner, Puja Chadha, approached the court seeking to quash the LOC that had effectively detained her in India since March 2025. The LOC was linked to ongoing investigations against her estranged uncle, Sanjay Bhandari, for offenses under the Prevention of Money Laundering Act. Despite the absence of any criminal charges against her, the LOC restricted her movement, citing potential economic interests and public safety concerns.
Justice Sachin Datta presided over the case, highlighting that the LOC regime should not be invoked based on conjecture or mere association with accused individuals. The court emphasized that the LOC, which significantly impacts an individual's right to travel, must be underpinned by concrete evidence and not mere familial connections.
The judgment underscored the evolution of guidelines governing LOCs, tracing back to the Ministry of Home Affairs' directives from 1979, and noted that the current framework, established in February 2021, mandates reasonable and material-backed issuance of LOCs. The court found that the petitioner's situation did not meet these criteria, as she was neither named in any prosecution complaint nor subject to any ongoing criminal proceedings.
The court also took into account Chadha's health concerns and the expiration of her visa, noting that her prolonged stay in India due to the LOC was untenable. The petitioner has cooperated with the investigation and has provided an affidavit undertaking to continue cooperation and furnish any required documents.
In conclusion, the court ordered the quashing of the LOC, permitting Puja Chadha to leave India and return to the UK. The judgment asserts that any breach of the undertaking by the petitioner would attract contempt proceedings, emphasizing the seriousness of the commitment made to the court.
The decision is a pivotal reminder of the balance between individual rights and the enforcement of legal measures, ensuring that administrative actions do not overstep bounds set by law and reason.
Bottom Line:
Issuance of LOC against a person not named as an accused in any complaint or criminal proceedings - Familial association with an accused is not sufficient to justify the issuance of an LOC - LOC cannot be issued merely on conjectures or surmises of economic interest or larger public interest - Conditions for issuance of LOC must be backed by cogent material and reasonableness.
Statutory provision(s): Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, Prevention of Money Laundering Act, Fugitive Economic Offenders Act, 2018, Contempt of Courts Act, 1971
Puja Chadha v. Directorate of Enforcement, (Delhi) : Law Finder Doc Id # 2787245
