Understanding the process of issuing LOCs

Explained |

The story so far: On April 5, the Punjab and Haryana High Court while quashing a Look Out Circular (LOC) against petitioner Noor Paul passed omnibus instructions to the respondents including the Ministry of Home Affairs (MHA) and the Bureau of Immigration (BOI) to serve a copy of the LOC to the affected person, state the reasons for issuing the LOC “as soon as possible” and provide a “post-decisional opportunity”. It asked the MHA to include these directions into the “Official Memorandum” or the guidelines that govern the opening of LOCs. The Government of India moved Supreme Court and the apex court stayed the particular paragraph of the High Court order. The High Court in its judgement has said that the action of the Bank of India to issue an LOC against Ms. Paul who was a guarantor to a loan procured by her father was “arbitrary, illegal and violative of Article 21 of the Constitution.” Ms. Paul got to know about the LOC when she was turned away from the Delhi airport on February 22 when she was there to travel to Dubai.

THE GIST

On April 5, the Punjab and Haryana High Court passed omnibus instructions to the Ministry of Home Affairs (MHA) and the Bureau of Immigration (BOI) to serve a copy of an issued LOC to the affected person, state the reasons for issuing the LOC and provide a “post-decisional opportunity”. The Supreme Court however, stayed this particular paragraph of the High Court order.

After several businessmen fled the country after defaulting on loans, the MHA in 2018 brought changes to the 2010 guidelines authorising executives of all public sector banks to generate LOCs against persons who could be detrimental to economic interests of the country.

Many citizens have moved courts to get the LOC quashed.