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Informist, Monday, Jul 15, 2024

 

NEW DELHI – The Delhi High Court has quashed lookout circulars issued by the Bureau of Immigration for Supertech Realtors Pvt Ltd director Mohit Arora at the request of Bank of Baroda and Union Bank of India. The court made it clear that it had made no observation about similar circulars issued at the instance of investigative agencies.

 

"No doubt an FIR (first information report) 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...," the court said. "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 (to life and liberty) guaranteed under Article 21 of the Constitution of India," said the court. 

 

Justice Subramonium Prasad said the right to travel abroad has been held to be a fundamental right under Article 21 of the Constitution of India, and the right cannot be abridged 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," the court said.

 

Supertech Ltd and its subsidiary Supertech Realtors had availed credit facilities from various entities, including Bank of Baroda and Union Bank of India, for various projects from time to time. In 2012, Supertech Realtors entered into a facility agreement with Union Bank of India for a term loan of 7.35 bln rupees wherein the bank granted credit facilities of 3 bln rupees to the company to develop an integrated commercial-cum-residential project, Supernova. Arora gave a personal guarantee to secure the amount.

 

Supertech and Supertech Realtors availed the credit facilities sanctioned by Bank of Baroda and Union Bank of India and Arora stood as personal guarantor. When Supertech and Supertech Realtors started defaulting on the repayment of their debts, their accounts were classified as non-performing assets by the two banks and recovery proceedings were initiated at the debt recovery tribunal. Consequently, lookout circulars were issued by the banks for Arora.

 

Today, shares of Bank of Baroda ended 3.2% higher at 258.55 rupees on the National Stock Exchange, and shares of Union Bank of India ended 2.3% higher at 139.18 rupees.  End

 

Reported by Surya Tripathi

Edited by Rajeev Pai

 

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