The Delhi High Court has quashed the Look Out Circulars (LOCs) issued against Sanjay Dangi and Amit Dangi by the Bureau of Immigration at the instance of the Enforcement Directorate (ED), in connection with an investigation into alleged financial irregularities involving Reliance Commercial Finance Limited and Reliance Home Finance Limited.
Justice Madhu Jain held that the continued restrictions on their foreign travel were not justified in the circumstances, particularly when both had cooperated with the investigation and no instance of evading summons or failing to appear had been shown. The Court observed that the pendency of an investigation, by itself, does not justify restricting a person’s right to travel abroad, which forms part of the fundamental right to personal liberty under Article 21 of the Constitution.
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The ED had opposed the quashing of the LOCs, citing the ongoing investigation into the alleged diversion of approximately ₹15,933.65 crore and the need to secure the petitioners’ continued availability. It argued that the investigation concerned significant economic interests and that further examination of financial transactions remained necessary.
The Court, however, found that the ED had not established the requisite connection between the petitioners’ departure from India and the alleged threat to the country’s economic interests or larger public interest. It also noted that neither petitioner had been arrayed as an accused in the prosecution complaint; Amit Dangi had been cited as a prosecution witness, while Sanjay Dangi had not been cited as a witness.
While quashing the LOCs, the Court directed both petitioners to furnish undertakings to cooperate with the investigation, provide their contact details and intimate the ED in advance of foreign travel, including details of their itineraries. The Court clarified that the requirement is one of prior intimation and does not require them to obtain the ED’s permission to travel abroad.
