The Bombay High Court Today (April 2nd) sought to know from the Serious Fraud Investigation Office (SFIO) under which circular or provision it could downgrade a lookout circular issued against a woman being investigated in a 2019 fraud case.
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Maharashtra: The Bombay High Court today sought clarification from the Serious Fraud Investigation Office (SFIO) regarding the legal basis upon which it could amend a lookout circular (LOC) previously issued against a woman implicated in a fraud case dating back to 2019.
Justices Revati Mohite Dere and Manjusha Deshpande, comprising a division bench, were deliberating on a plea submitted by Shikha Kapadia, who appealed for the annulment of the LOC issued in her name in September 2019, subsequent to the initiation of an investigation by the SFIO against her and the company she was employed by.
During the proceedings, Advocate S K Halwasia, representing the SFIO, disclosed to the court that the agency had decided to modify the status of the LOC concerning Kapadia. The adjustment entailed a relaxation of restrictions, allowing Kapadia to travel without the need to obtain prior permission. However, immigration officials would be obligated to notify the SFIO each time she travels.
This revelation prompted the court to inquire about the legal grounds that permitted such a modification of the LOC. The bench expressed its unfamiliarity with the concept of “downgrading” an LOC and requested the SFIO to provide evidence of the legal provisions, circulars, or guidelines that authorize such an action.
The matter has been adjourned to the next week for further deliberation, with instructions for the relevant SFIO officer to be present either in person or through video-conferencing.
Kapadia, who served as a company secretary and compliance officer for CG Power and Industrial Solutions Limited, has contested the LOC, deeming it arbitrary, unlawful, and a misuse of legal authority. Her involvement came to light following accusations of fraudulent transactions against her and the company, leading to the issuance of the LOC in September 2019 by the SFIO.
Moreover, Kapadia’s lawyer, Aniket Nikam, noted that despite the court’s previous directive for the SFIO to furnish a copy of the LOC, the agency had not complied. The bench has consequently mandated the SFIO to present the document at the next hearing, underscoring the legal and procedural questions surrounding the issuance and amendment of lookout circulars.
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