On 16 October 2026, Justice Madhu Jain of the Delhi High Court set aside lookout circulars (LOCs) issued against two senior officials of a company in a money-laundering case. The company had acquired a housing-finance business. The ED’s ECIR, registered on 22 July 2025, rested on 2022 CBI FIRs about alleged irregularities in 2017 to 2019, under the business’s former management. The petitioners were not named as accused in the CBI FIRs. They had been summoned and had given statements on several dates.
What was decided
The Court held that continuing the LOCs was not justified, because the petitioners’ presence could be secured in other ways. It said that further investigation still pending, without adequate justification, cannot support “a continuing restriction upon the fundamental right to travel abroad”.
The petitioners must cooperate, appear when summoned and produce documents. Before any foreign travel, they must give the investigating officer their itinerary, destinations and overseas contact numbers. The ED was directed to send the judgment to the Bureau of Immigration, which must update its records.
Why it matters
LOCs are often opened during PMLA investigations and can stay in place for years. People usually learn of them only at the airport. The ruling confirms that an LOC is not a routine part of every investigation. It needs continuing justification, especially against people who are not accused and who have cooperated.
For company officers, new owners of acquired businesses and professionals examined as witnesses, this is useful authority. Courts can replace an LOC with conditions such as prior intimation of travel. The same principles can be urged before the Allahabad High Court in UP-based ECIRs.
Practical points
- Keep records of every summons, appearance and document produced. A history of cooperation is central to an LOC challenge.
- If an LOC is suspected, the reasons and the issuing authority can be sought through proper channels or before the court.
- Offer workable conditions, such as itinerary disclosure, undertakings to return and contact details, in place of a blanket travel bar.
- After an LOC is quashed, check that the Bureau of Immigration has updated its records before travelling.
Sources: ThePrint (PTI), 18 Oct 2026.
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General legal information only; not legal advice or solicitation.
