The Delhi High Court has set aside lookout circulars (LoCs) issued against Supertech Realtors director Mohit Arora by the Bureau of Immigration. The LoCs were issued at the request of Bank of Baroda and Union Bank of India.
However, the HC clarified that it has not made any observations regarding such circulars issued against Arora at the instance of other investigative agencies.
“No doubt an FIR has been registered against the Petitioner but that alone cannot be a reason for continuing the lookout circular issued at the instance of the banks…” Justice Subramonium Prasad said, adding that “it is well settled that mere inability to pay money without there being a criminal case cannot be a reason to take away the fundamental right guaranteed under Article 21 of the Constitution of India.”
The HC held that the right to travel abroad has been held to be a fundamental right under Article 21 of the Constitution of India which cannot be taken away in an arbitrary and illegal manner. “It is well settled that merely because the office memorandum permits the issuance of a lookout circular in exceptional circumstances, even when an individual is not involved in any offence under the IPC(Indian Penal Code) or any other penal law, the said power should be used in exceptional circumstances and not as a matter of routine,” said the court.
Supertech Ltd and its subsidiary had taken credit facilities from various entities including Bank of Baroda, Union Bank of India for development of various projects from time to time. In 2012, a facility agreement was entered into by the Supertech Realtors with Union Bank of India in 2012 for the term loan of Rs 735 crore wherein the latter had granted credit facilities of Rs 300 crore to the company for developing integrated commercial-cum-residential project, namely, Supernova in Noida, Uttar Pradesh. Arora had given a personal guarantee to secure the loan.
In March, 2014, the Union Bank of India had also sanctioned financial assistance of Rs 150 crores for setting up of an integrated residential project named ‘Eco Village-II, Phase-I in Greater Noida (West) and Arora had stood as a guarantor.
Since Supertech and Supertech Realtors started defaulting in repayment of their debts, their accounts were classified as NPAs by the two lenders, which had also initiated recovery proceedings against Supertech and its guarantors. Consequently, five look out circulars were issued against Arora by the Bureau of Immigration.
