Look out circular on Karti quashed by Madras HC

Chennai: Setting aside the ‘look out circular’ (LOC) issued by the CBI against former Union minister P Chidambaram’s son Karti P Chidambaram in connection with the INX media case, the first bench of Chief Justice Indira Banerjee and Justice Abdul Quddhose of the Madras High court made it clear the order will not impact the criminal proceedings initiated against him pursuant to the FIR field by the CBI. The bench quashed the LOC saying that, in its view, the LOC was issued in hot haste when the conditions precedent for issuance of such circular did not exist.

The prosecution alleged irregularities in the Foreign Investment Promotion Board (FIPB) clearance to INX Media for receiving overseas funds to the tune of Rs 305 crore in 2007 when Chidambaram was the Union finance minister. On May 15, 2017 the CBI filed an FIR against Karti before the Special Judge, CBI Court, New Delhi, under sections 120-B and 420 of IPC read with sections 8 and 13 of the Prevention of Corruption Act.

After a month, on June 15, 2017 the agency issued a notice to Karti directing him to appear before the investigating officer on June 29, 2017. Challenging the LOC, Karti in the petition, said on the very next day the lookout circular was issued against him.

The bench said an LOC, which is a coercive measure to make a person surrender and consequentially interferes with his right of personal liberty and free movement, certainly has adverse civil consequences. This court, therefore, holds that in exercise of power of judicial review it can interfere with an LOC.  The bench said the conditions precedent for issuance of the impugned LOC were absent, and the LOC is liable to set aside on that ground. And we need not go into the questions of whether an LOC could have been issued without statutory sanction, or whether the respondents concerned had jurisdiction to issue the impugned LOC.