Madras HC stays look out circular against Karti, 4 others

The Madras High Court today stayed the 'look out circulars' issued against former Union minister P Chidambaram's son Karti Chidambaram and four others by the Centre over a corruption case filed by the CBI, holding that they were prima facie "unwarranted".

Justice M Duraiswamy granted the interim stay when petitions filed by Karti and others seeking to quash the circulars came up for hearing, and directed the central government to file its counter by September 4.

Karti's associates C B N Reddy, Ravi Viswanathan, Mohanan Rajesh and S Bhaskararaman also got the interim relief.

Noting that the impugned circular had been issued just a day after the notice was sent under relevant CrPC sections asking Karti to appear on June 29 for questioning, the judge said, "this...according to this court, is prima facie unwarranted".

In the case of other four petitioners also, the circulars were issued even before the date of their appearance before investigating officers, which was also prima facie "unwarranted", he said.

The petitioners had made out a prima facie case for the grant of interim stay. "Therefore, the impugned 'look out circulars' should be stayed till the disposal of the writ petitions," Duraiswamy said in his interim order.

He, however, made it clear that the petitioners shall co-operate with respondents at the time of enquiry, and in case of overseas travel inform the investigating officer in writing about the date of departure and arrival at least three days in advance.

The Foreigner Regional Registration Officer (FRRO) and the Bureau of Immigration under the Union home ministry had issued the circulars against Karti on June 16 last and against the four others on July 18.

In his petition, Karti contended that the look out circular was part of the central government's "political vendetta" and issued "arbitrarily" without jurisdiction to prevent him from travelling abroad.

He also said he had responded to the summonses issued by the CBI in connection with the case and there was "no absolute cause of action" for issuance of the circular.

The case is related to alleged irregularities in the Foreign Investment Promotion Board (FIPB) clearance to INX Media for receiving overseas funds when Karti's father was the Union finance minister in 2007.

CBI had claimed that the FDI proposal of the media house was "fallacious" but Chidambaram had cleared it.

The FIR dated May 15, 2017 was registered before the special judge, Prevention of Corruption Act, CBI, Patiala House, New Delhi. It was followed by searches at residences and offices of Karti and his friends, on May 16, 2017. The look out circular was issued on June 16.

Opposing Karti's plea, the Centre had told the court that after the experience of liquor baron Vijay Mallya leaving the country, it had become imperative for it to issue the look out circular against him (Karti).

Countering this, Karti said the CBI and the home ministry cannot cite past experience with certain persons who were not cooperating in investigation for issuing the circular against him.

He charged that the central government had been pursuing a "politically motivated vendetta" against his family and all persons even remotely connected to him were being targeted.