The Delhi High Court quashed the Look-Out Circular (LOC) issued by the Directorate of Revenue Intelligence (DRI) against a Hong Kong-based businessman of Indian origin, holding that there were no subsisting proceedings or cognizable offences justifying the restriction on his travel.
Justice Sachin Datta observed that the DRI’s investigation into alleged overvaluation of coal imports had already culminated in the Order-in-Original dated November 29, 2023, exonerating the petitioner and others of any wrongdoing. The said order was upheld by the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Mumbai through two appellate orders dated March 25, 2025 and September 22, 2025, with no stay granted by any superior court.
The Court noted that the first LOC (2015–2018) was based on petitioner’s Indian passport that had been renounced in 2013 and that a fresh LOC in May 2025, concerning decade-old transactions, was disproportionate and contrary to the Office Memorandum dated February 22, 2021, which permits LOCs only in cognizable offences or exceptional cases affecting national or economic security.
The Court held that the proceedings under the Customs Act did not constitute cognizable offences and that petitioner’s continued cooperation including attending multiple summonses and engaging Hong Kong counsel to retrieve banking records showed no flight risk.
Accepting an undertaking from petitioner to continue cooperating with the investigation, the Court quashed the LOC, cautioning that any breach of the undertaking would attract contempt action.
Appearances:
Petitioner: Mr. Sidharth Luthra, Sr. Advocate along with Mr. Sidhant Kumar, Ms. Devika Mohan, Ms. Manyaa Chandok and Mr. Om Batra, Advocates.
Respondent: Mr. Anurag Ojha, SSC, Mr. Dipak Raj, Mr. Shashank Kumar, Ms. Garima Kumar, Mr. Kuldeep Mishra and Mr. Deep Raj, Advocates for R-1.
Mr. Ripudaman Bhardwaj, CGSC, Mr. Kushagra Kumar and Mr. Amit Kumar Rana, Advocates for UOI.
