Enforcement Directorate has summoned Reliance Group Chairman Anil Ambani for questioning on 5 August in a money laundering case linked to an alleged bank loan fraud worth crores of rupees against his group companies, official sources were quoted as saying by news agency PTI on Friday.
The news agency said the federal probe agency has also issued a Lookout Circular (LOC) against the 66-year-old businessman to prevent him from travelling abroad.
Anil Ambani has been asked to depose at the ED headquarters in Delhi on 5 August as the case has been registered here.
The agency will record his statement under the Prevention of Money Laundering Act (PMLA) once he deposes, the agency said. Some executives of Ambani’s group companies have also been summoned over the next few days.
The summons came after the federal agency conducted searches at 35 premises of 50 companies and 25 people, including executives of his business group, last week. The searches, launched on July 24, went on for three days.
The action pertains to alleged financial irregularities and collective loan “diversion” pegged at more than ₹17,000 crore by multiple Anil Ambani group companies, including Reliance Infrastructure (R Infra).
What is a Lookout Circular?
A lookout circular (LOC) is a circular letter used by authorities in India to check whether a travelling person is wanted by the police. It may also be used at immigration checks at international borders, such as airports or seaports.
Lookout circulars are opened to search for absconding criminals and also to prevent and monitor effectively the entry or exit of anyone who may be sought by law enforcement agencies. When issued, they are sent to all immigration checkpoints in the country. An LOC is valid for an initial period of one year, but can be extended.
What is the purpose of a Lookout circular?
LOCs are primarily aimed at individuals from leaving the country to avoid legal action, investigation, or arrest.
What is the process?
The Bureau of Immigration of the Home Ministry is the only executing agency.
Details such as First Information Report (FIR) number, court case number are to be mandatorily provided with name, passport number for an LOC, according to according to a 2010 official memorandum of the Ministry of Home Affairs (MHA).
Since immigration posts are manned by the BOI officials, they are the first responders to execute LOCs by stopping, detaining, or informing about an individual to the issuing agency.
Who issues an LOC?
Various authorities can issue an LOC, including police officers above a certain rank, magistrates, and specific agencies like the CBI, and the ED, as in Anil Ambani case.
How does an LOC work?
Once an LOC is issued by the particular agency, it’s circulated to all immigration and border control points. The idea is to ensure that immigration officials are aware of the individual’s presence and can prevent his/her departure.
Why is an LOC issued?
An LOC is issued primarily because of any of the following reasons:
-When someone deliberately evades arrest and is wanted in a criminal case.
-When an NBW is issued against a person.
-When someone is accused of financial irregularities.
A Lookout Circular is primarily aimed at individuals from leaving the country to avoid legal action.
-Or in case there is a chance that the person accused of a crime might flee the country.