Travelling abroad a constitutional right: Court suspends LOC in PMLA probe

A Delhi court has directed the ED to suspend a lookout circular (LOC) against the erstwhile promoter of Kwality Ltd., Siddhant Gupta in a money laundering case, saying travelling abroad was a constitutional right.

Principal District and Sessions Judge Anju Bajaj Chandna allowed the application seeking directions to the Enforcement Directorate (ED) for suspension of the LOC issued by it from January 25 to February 8 to enable him to visit Singapore to drop his daughter and make arrangements for her there for further studies.

"The right to free movement includes travelling abroad and the same is the constitutional right of the applicant. The applicant has sought permission to travel abroad for a limited period and for a specific purpose. In my opinion, no prejudice would be caused to ED if for a limited period, LOC is suspended and the applicant is permitted to visit abroad," the judge said in an order passed on Friday.

 

The judge noted that Gupta's anticipatory bail application was pending before the court and was fixed for hearing on January 30 and in a related case lodged by the BCI, based on which the ED started the present investigation, the accused was earlier granted permission to visit abroad.

Special Public Prosecutor Atul Tripathi, appearing for the ED, opposed the application, stating that the investigation in the present ECIR was going on and the departure of the applicant from India was detrimental to the economic interest of India and "such departure ought not to be permitted in the larger public interest".

He said that there was every possibility that Gupta may not return to India if permitted to travel abroad.

According to the ED, Gupta and the company's co-promoter Sanjay Dhingra had created a number of dummy companies and entities in order to enhance the turnover of Kwality Limited.

They are accused of siphoning off the proceeds of crime i.e. the loan funds availed by Kwality Limited from the consortium of banks for the purpose of creating assets in their names and the name of their family members and also in the name of entities which were beneficially owned by them.