What is a “Look Out Circular”?
A “Look Out Circular” (LOC) is a notice issued by authorities to prevent a person from leaving the country or to track their movements. It’s typically issued against individuals who are wanted by law enforcement agencies for various reasons such as investigation, trial, or arrest warrants. LOCs are used to ensure that individuals under investigation or involved in legal proceedings cannot leave the country until the matter is resolved.
A “Look Out Circular” is issued not only to prevent a person from leaving India but also to apprehend the person when he/she enters India.
Who can issue LOC ?
➤Any police officer over and above the rank of the Superintendent of Police can send a request for opening of LOC.
➤Any magistrate in whose court the trial is pending can order the issuance of LOC.
➤Central Bureau of Investigation (CBI), the Directorate of Revenue Intelligence (DRI), Directorate of Enforcement (ED),the Customs and Income Tax Department, and the Economic Offences Wing (EOW) can also send a request for opening of LOC.
Against whom LOC can be issued?
LOCs can be issued against persons who are deliberately evading arrest in courts or when a non-bailable warrant has been issued against them and there is a likelihood of their evading arrest/trial. LOCs are issued primarily in cases where cognisable offences were alleged to have been committed or had been committed under the Indian Penal Code (IPC) or other penal laws.
How to get LOC revoked or cancelled?
➤Letter/Representation is sent to the issuing agency/authority to lift theLOC. In case of an ongoing investigation, it is extremely difficult to get the LOC lifted from the agency/authority.
➤Approach the court of competent jurisdiction for grant of interim travel permissions/stay the operation of LOCs or quash them completely. Writ petition can be filed in the Hon’ble High Court for quashing of the LOC or for grant of stay on the operation of the LOC.
➤From the esteemed team at NRI LEGAL CONSULTANTS, Advocate Jaspreet Benipal had skillfully represented various matters pertaining to stay on the operation of LOC/revocation of the order of LOC. The courts have time and again given paramount importance to right to life and liberty which further highlights that LOCs are coercive measures employed during ongoing criminal investigations, and they must not be open-ended.
LANDMARK JUDGEMENTS
Vikas Aggarwal Vs. Union of India (P&H)
Look Out Circulars – Indian entities can not seek Look Out Circulars in respect of dues owed to their sister entities incorporated in the UAE.
Mrs.Poonam Paul Vs Union of India (P&H)
Loan Default – When not even FIR registered and no question of being ‘accused’ of any non-cognizable offence, Look Out Circular cannot be issued to detain guarantor for defaulter of loan.
Raman Kumar Mehta Vs. Union of India (P&H)
Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, Section 13(2) – Default in repayment of loan – Challenging Look Out Circular – Petitioner was prevented from travelling abroad on 11.08.2022 to Canada – Petitioner contends that he has a constitutional right to go abroad and such a right cannot be prevented from being exercised – It cannot be said that the departure of the petitioner from the country would adversely impact the economy of the ‘country as a whole’ and destabilize the ‘entire economy’ of the country – LOCs issued and extended by respondent No.3 at the instance of respondent No.2 Bank cannot be sustained – When the petitioner is not alleged to have committed any cognizable offence, he could not have been prevented from leaving the country by respondents – Order set aside.
Karti P. Chidambaram v. Bureau of Immigration, – the Hon’ble Madras High Court opined that the issuance of LOC, though being an executive decision, was amenable to judicial review under Article 226 of the Constitution of India. In this case, the Court reached a conclusion that the LOC was issued in haste, without following the conditions precedent for issuance of such a drastic action.
Conclusion
Although there is no specific statute which governs the issuance of LOC but time and again the courts have given paramount importance to the fundamental right to life and liberty and have emphasised that the right is a fundamental right of Indian citizens and reaffirmed that Indian citizens have a fundamental right to travel abroad, as protected by the Passports Act, 1967.
One must follow the procedures laid down by law with due diligence inorder to avoid any untoward situation and in case of any ongoing cases, one must take note of the court/case proceedings that are being undertaken before flying in/out of the country.