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2025 Supreme(Online)(Mad) 58867
IN THE HIGH COURT OF JUDICATURE AT MADRAS
N. Sathish Kumar, J
Moosa Shariq Sina Abul Kasim – Appellant
Versus
The Deputy Director Directorate of Enforcement – Respondent
W.P. (Crl.) No.597 of 2025
For the Appellants/Petitioners: Mr.Vaibhav R.Venkatesh for Mr.S.Ravi
For the Respondents: Mr.N.Ramesh Special Public Prosecutor (EO)
The court may lift a Lookout Circular if the petitioner demonstrates cooperation with ongoing investigations, balancing individual liberties against public interest.
Headnote:(A) Constitution of India - Article 226 - Writ of Mandamus - Petitioner seeks withdrawal of Lookout Circular issued in connection with a foreign exchange investigation - Petitioner has been cooperating with the investigation and is ready to appear as required, making a case for lifting the restrictions on his travel - Respondents based their objections on ongoing investigations and potential flight risk. (Paras 2-6)
(B) Lookout Circular - Proper usage and duration - The court examined the legitimacy of the Lookout Circular issued against the petitioner who was alleged to be involved in a foreign exchange violation, emphasizing the need to balance the interests of justice with individual liberties. (Paras 6-8)
Facts of the case:
Petitioner was detained under a Lookout Circular while returning to India and claims to have no connection with the alleged transaction under investigation. He is engaged in a small trading business.
Findings of Court:
The petitioner is directed to give an affidavit undertaking to cooperate with the investigation, after which the Lookout Circular shall be kept in abeyance.
Issues: The primary question addressed was whether the Lookout Circular could be lifted based on the petitioner’s cooperation and prior court decisions regarding similar cases.
Ratio Decidendi: The court recognized the petitioner’s willingness to cooperate and deemed it appropriate to keep the Lookout Circular in abeyance while ensuring he remains available for investigation as required.
Result: Writ Petition (Criminal) stands allowed.
| Table of Content |
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| 1. petitioner contested the validity of the lookout circular based on alleged discrepancies in the investigation. (Para 1 , 2) |
| 2. the court observed that the lookout circular must follow proper guidelines and be justified by facts. (Para 3) |
THE HON'BLE MR.JUSTICE N. SATHISH KUMAR W.P. (Crl.) No.597 of 2025 Moosa Shariq Sina Abul Kasim ... Petitioner Vs.
1. The Deputy Director Directorate of Enforcement Chennai Zonal Office No.2, 5th and 6th Floor BSNL Administrative Building Kushkumar Road Nungambakkam, Chennai - 600 034
2. The Assistant Director Directorate of Enforcement Chennai Zonal Office No.2, 5th and 6th Floor BSNL Administrative Building Kushkumar Road Nungambakkam, Chennai - 600 034 ... Respondents PRAYER : Writ Petition filed under Article 226 of the Constitution of India to issue a Writ of Mandamus to direct the second respondent to forthwith withdraw the Lookout Circular issued in File No.T-
3/88/CEZO/C/2015 on the file of the second respondent.
For Petitioner : Mr.Vaibhav R.Venkatesh for Mr.S.Ravi For Respondents : Mr.N.Ramesh Special Public Prosecutor (EO)
O R D E R
This Writ Petition has been filed to direct the second respondent to forthwith withdraw the Lookout Circular issued in File No.T-
3/88/CEZO/C/2015 on the file of the second respondent.
2. The case of the petitioner is that the petitioner was carrying out a small-time trading business of buying and selling of goods from Dubai, Hongkong and India. He had been earning his livelihood this way for more than 10 years to provide for his family. On 2013, the petitioner was offered a consideration of $3000 (Hongkong Dollars) by one Mr. Hossain, who was living across the hall in the Mansion called Chungking Mansion, for a favour of signing some unknown documents. He accepted the consideration and carried out to sign the given papers which he could not read as it was in Mandarin and in English. On 04.02.2022, when the petitioner came back to India from Dubai, he was detained at Chennai International Airport by the Immigration Authorities showing the Lookout Circular issued against him by the respondents. He was asked by the Authorities to appear before the second Respondent's Office. On summons, he appeared before the second respondent office on 27.12.2023 and explained clearly that he had no connection with the alleged transaction by M/S.Raju Trading Corporation.
On the impression that the impugned Lookout Circular generally exists for a specified duration and expires automatically, the petitioner decided to pursue his usual business activities and booked tickets to Colombo, Sri Lanka on 25.06.2025. To the utter dismay, the petitioner was again detained at International Airport by the Immigration Authorities and asked to appear before the Enforcement Directorate on 27.06.2025. Hence the petitioner duly appeared before the second respondent on 27.06.2025 and gave statement. Further, the petitioner sent a reminder letter dated 28.06.2025 to the second respondent requesting to withdraw the Lookout Circular issued against him. But the same has not been considered so far. Since the look out circular is pending against the petitioner, he is not able to leave India. Hence, the present Writ Petition is filed for a direction to the second respondent to withdraw the Lookout Circular.
3. The respondents filed a counter affidavit. The relevant portions in the counter affidavit are extracted hereunder:
2.8 As mentioned above, M/s Aigner Limited, Hong Kong, and its beneficial owner Shri. Moosa Shariq Sina Abul Kasim has received the foreign exchange and has not supplied the goods in lieu of foreign exchange and neither returned the foreign exchange so received by them in the guise of advance import remittance. Thus, the Petitioner herein has contravened the provisions of FEMA , 1999, and made himself liable for penalty under Section 13 , 1999, relevant regulations framed there under and the directions issued by RBI.
3. ..
3.1... 3.2...
In the above case, the Petitioner
