Travel Freedom Restored: Delhi HC Quashes ED Lookout Circulars in Reliance Finance Probe
Delhi High Court lifts travel restrictions on Sanjay and Amit Dangi in the Reliance Finance money laundering probe, citing right to personal liberty.
In a significant ruling centered on the fundamental right to personal liberty, the Delhi High Court has quashed the Lookout Circulars (LOCs) issued by the Enforcement Directorate (ED) against Sanjay Dangi and Amit Dangi. The restrictions were imposed as part of a larger money laundering investigation into alleged financial irregularities involving Reliance Commercial Finance Limited (RCFL) and Reliance Home Finance Limited (RHFL).
Right to Travel vs. Investigation Needs
Presiding over the matter, Justice Madhu Jain observed that the continued operation of the LOCs was not justified given that the petitioners had been cooperating with the probe. The court emphasized that the mere fact that an investigation is ongoing cannot be used as a reason to indefinitely restrict a person's right to travel abroad.
The court highlighted that the right to travel is an integral part of the fundamental right to personal liberty guaranteed under Article 21 of the Constitution. In the specific case of Sanjay Dangi, the court remarked that maintaining the LOC for an indeterminate period, despite his compliance with legal processes, would be "shockingly disproportionate."
Court's Findings on the Petitioners
The court noted several key factors in favor of the petitioners, particularly regarding Sanjay Dangi:
- He had appeared in response to every summons issued to him by the agency.
- There was no evidence provided to suggest he had ever evaded the investigation.
- He had not been named as an accused or even cited as a witness in the prosecution complaint filed by the ED.
While the ED argued that the investigation was still active and that the resolution process of the two finance companies required further examination, the court found these arguments insufficient. The agency failed to demonstrate how the petitioners' departure from India would frustrate the probe or harm India's economic interests.
Conditions for Travel
While the court lifted the travel bans, it did not grant an unconditional pass. To ensure continued cooperation with the ED, the court mandated the following requirements:
- Affidavits: Both petitioners must submit affidavits to the ED within one month, pledging to cooperate with the probe and produce necessary documents.
- Prior Intimation: Before traveling abroad, they must notify the investigating officer via email. This notification must include a full itinerary, destinations, flight details, dates of departure and return, and contact information while abroad.
- Accessibility: They must remain accessible to the agency and promptly communicate any changes to their travel plans.
Crucially, the court clarified that this is a requirement for intimation and not a requirement to seek permission from the ED to travel.
Clarification on the Case Merits
The court made it clear that this order does not touch upon the actual merits of the money laundering allegations. The ED remains free to proceed with its legal actions if new evidence surfaces or if circumstances change.
Regarding the ED's mention of a complaint filed by the Bank of Baroda to the CBI concerning the resolution process, the court noted that while such complaints may need examination, they do not justify keeping Sanjay Dangi confined to India indefinitely.
The Enforcement Directorate has been directed to communicate this judgment to the Bureau of Immigration to ensure the records are updated and the LOCs are officially removed.