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Supreme Court questions look out circular norms, stays LOC in Rs 450 crore fraud case

Bench asks home ministry to explain procedures and stresses accused must be informed of circulars citing impact on personal liberty and rights

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Our Bureau
Published 29.04.26, 07:12 AM

The Supreme Court on Tuesday issued notice to the ministry of home affairs to examine the standard operating procedures adopted by government agencies while putting out look-out circulars against accused persons.

The court stayed the circular issued against Nimesh Navinchandra Shah, facing criminal prosecution by the CBI and the ED in a case relating to a default of over 450 crore owed to a consortium of banks.

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A bench of Justices Vikram Nath and Sandeep Mehta passed the directions after the counsel appearing for Shah complained that his client was intimated about the circular only in May 2025, despite it being issued by the CBI in November 2022.

The court was dealing with an appeal filed by Shah challenging the refusal of Bombay High Court to quash the circular against him on the ground that cases relating to financial transactions should be dealt with severity.

Justice Nath took the view that when a circular is issued against an individual, it has to be communicated to the person as it involves an individual's right to life, personal liberty and dignity. The bench said it wanted to examine the SoPs followed in cases where look-out circulars are issued against individuals.

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