IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD THE HON’BLE SRI JUSTICE NAGESH BHEEMAPAKA WRIT PETITION No.40405 of 2022 DATE OF ORDER:- 15.12.2025 BETWEEN Kovuru Rajgopal Reddy, S/o. Kovuru Subba Raghava Reddy, R/o.Hyderagbad.

… Petitioner AND UCO Bank, Assets Management Bank, Hyderabad & 3 others.

… Respondents ORDER:-

1. This Writ Petition is filed declaring the action of respondents in issuing Look Out Circular against the petitioner from travelling abroad and holding his Passport No.Z4388716 on 03.08.2021, as illegal and violation of guidelines issued by Union of India vide Office Memorandum dated 22.02.2021 and consequently to direct respondent No.4 to quash the Look Out Circular issued by him at the instance of respondent No.1.

2. Heard Sri Srinivas Rao Bodduluri, learned counsel for the petitioner as well as Ms.M.Shalini, learned Standing Counsel for respondent-Bank. Perused the record.

3. The case of the petitioner is that he was engaged in the business of execution of irrigation and civil construction works and has approached respondent No.2 for availing cash credit facility and the respondent No.2 has sanctioned loan of Rs.485 lakhs but released only Rs.475 lakhs. The petitioner had paid the interest as well as principle amount regularly. But due to unfavourable market conditions, the petitioner’s company ran into temporary liquidity due to which he could not pay the interest due to the respondent- bank and hence the credit facility of the company was declared as NPA. Aggrieved by the same, the petitioner filed W.P.No.4401 of 2017 and as per the orders passed in the said writ petition, the company had deposited an amount of Rs.175 lakhs towards partial adjustment of Bank dues. Further, though the petitioner’s company has submitted OTS settlement of Rs.260 lakhs in full and final settlement of the companies due of Rs.329 lakhs, the respondent-Bank has declined the said offer. While the things stood thus, the petitioner was scheduled to travel to Maldives on 03.08.2021 for business conference, but he was prevented from boarding the flight at Kampegouda International Airport at Bangalore on the ground that a Look out circular (LOC) was issued against him. It is stated that the petitioner was not provided with a copy of Look Out Circular and that there are no criminal proceedings pending against him and that in order to raise funds, the petitioner need to attend important business meeting in Dubai during 1^st week of November and as the petitioner is not being allowed to travel abroad, he filed the present writ petition seeking to suspend the operation of Look Out Circular issued against the petitioner.

4. Learned counsel for the petitioner contended that the petitioner was not provided with the copy of the said LOC which is clear contravention of the Office Memorandum dated 22.02.2021 issued by Ministry of Home Affairs. Learned counsel also referred to Clause 6(L) of the said Memorandum which reads as follows:-

“6(L) In exceptional cases, LOCs can be issued even in such cases, as may not be covered by the guidelines above, whereby departure of a person from India may be declined at the request of any of the authorities mentioned in clause (B) , if it appears to such authority based on inputs received that the departure of such person is detrimental to the sovereignty or security or integrity of India or that the same is detrimental to the bilateral relations with any country or to the strategic and /or economic interests of India or if suchperson is allowed to leave, he may potentially indulge in an act of terrorism or offences against the State and/or that such departure ought not be permitted in the larger public interest at any given point in time.”

5. In the instant case, there are no criminal proceedings against the petitioner nor there is any investigation by the State Police, CBI or Enforcement Directorate initiated against the petitioner. Further, despite multiple oral and written requests, the respondent -B