The Delhi High Court on Tuesday refused to suspend the Look Out Circular (LOC) and to grant interim permission to businessman Uday Jayant Desai to travel abroad.
The court dismissed the application in view of the serious allegations and the amount of the loss allegedly caused by him to a consortium of 14 banks. He is accused of bank fraud worth more than Rs 3,000 crore. He has eight cases being probed by different agencies including CBI and SFIO.
Desai had moved an application seeking permission to travel abroad and suspension of Look Out Circular (LOC) issued against him. One of the former key management personnel in M/s. Frost Infrastructure and Energy Ltd. had sought permission on medical grounds as well as his desire to meet his two sisters staying abroad and in light of his advancing years.
Justice Yashwant Varma while dismissing the application, said, "The nature of proceedings in which the petitioner stands arraigned, the sheer magnitude of the losses caused to the financial institutions as well as the multiple investigations which are ongoing leaves the Court convinced at this stage that the issuance of the Look Out Circular is clearly justified."
The High Court said, "The permission if granted would be detrimental to the economic interests of the country and in any case, the larger public interest would justify the restraint on travel as imposed."
The bench noted that there are serious allegations of huge defalcation of funds and loss having been caused to Financial Institutions to the tune of over Rs 3,000 crores.
"The Court bears in mind that the 2017 circular which hold the field does not restrict the issuance of a Look Out Circular merely to a situation where a criminal offence may have been committed but also extends the situations where the issuance of Look Out Circular may be warranted bearing in mind the economic interest fo the country as well as larger public interest," the bench observed.
Desai had approached the court seeking permission to travel abroad from August 1, 2022 to September 15, 2022 and to suspend the LOC issued against him.
( With inputs from ANI )
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor