The main legal point established in the judgment is that a preventive/detentive Look Out Circular (LOC) leading to the detention of the petitioner was unwarranted, and the petitioner should only be subject to an intimation LOC without detention or prevention at the airport.

JUDGMENT :

Mukta Gupta, J.

1. By this petition, the petitioner seeks a writ of mandamus directing the Directorate of Enforcement to withdraw the Look Out Circular (LOC) issued against the petitioner in ECIR No. 02/DLZO/2016.

2. Learned counsel for the petitioner contends that in the seven RCs registered by the CBI against the petitioner’s grandfather, late father and late uncle on the allegations of commission of offences under the IPC and Prevention of Corruption Act, 1988 in the year 2012-2013, the petitioner was not made an accused, since admittedly at the time of alleged offence i.e. from the year 2005 to 2011, the petitioner was a minor being 8 to 14 years old and was not involved in the family business. In the ECIR recorded by the Enforcement Directorate against the petitioner’s relatives including his grandmother, the petitioner was never arrayed as an accused nor any complaint has been filed against him. Even in the second ECIR recorded in the year 2016 against the petitioner’s relatives, the petitioner was neither named as an accused nor complaint filed against him. Petitioner pursued his Bachelors in Mechanical Engineering from Purdue University, Indiana, USA from April 2016 to February 2021. Petitioner’s father expired on 25th October, 2019. On 23rd February, 2021 upon his return to India, petitioner was detained at the airport for three hours on account of the LOC opened against him in the second ECIR. Petitioner was asked to join investigation on 24th February, 2021 and since that date no summons have been issued to the petitioner. Petitioner thus seeks quashing of LOC in terms of the decision of this Court reported as Sumer Singh Salkan Vs. Assistant Director & Ors. ILR (2010) 6 DELHI 706

3. Learned counsel for the petitioner further contends that vide Provisional Attachment Order No. 2/2020 respondent has attached four bank accounts, five mutual funds, one insurance policy and the Dhruv Family Private Trust Bank Account which are held in the name of the petitioner. The said Provisional Attachment Order has been confirmed by the adjudicating authority vide orders dated 21st September, 2020 and 23rd September, 2021. Respondent further identified assets in the form of a PPF account and equity holdings held by M/s ADA Family Trust & Dhruv Family Private Trust which were also provisionally attached, which order has also been confirmed by the adjudicating authority vide the order dated 25th September, 2020. Thus all the assets in the name of petitioner and allegedly connected with the proceeds of the crime generated from the commission of the predicate offences stand attached by the respondent. Learned counsel for the petitioner further contends that knowing fully well that the petitioner was a minor at the time of alleged commission of offence between the year 2005 to 2011 the respondent insists on continuing with the LOC against the petitioner, which is illegal and arbitrary.

4. In response to the petition, a status report was filed by the respondent stating that seven FIRs were registered by the CBI on the basis of written complaint of bank officials under the provisions of IPC and Prevention of Corruption Act wherein charge-sheet was filed against Prabodh Kumar Tewari, Anand Tewari and Abhishek Tewari and others. Based on the predicate offence, two ECIR were recorded and the second ECIR/02/DZ/2016 was recorded on 20th July, 2016 against M/s Pixion Media Pvt. Ltd., Pearl Media Pvt. Ltd., M/s Mahuaa Media Pvt. Ltd., M/s. Pixion Vision Pvt. Ltd., M/s. Pearl Studio Pvt. Ltd., M/s. Pearl Vision Pvt. Ltd., M/s. Century Communication Ltd. It is contended that all the group companies of the Century Communication Ltd. adopted a common modus operandi of defrauding the public sector banks and caused a loss of Rs. 2671 crores approximately by availing term loans and cash credit facilities. By rotating the funds through a maze of transactions, to conceal the source of ill-gotten, tainted money, a new identity was sought to be given