Vague Economic Interest or Familial Connection with PMLA Accused Not Grounds to Issue LOC: Delhi High Court

The Delhi High Court recently observed that the grounds of ‘economic interests of India’ and ‘larger public interest’ cannot be invoked to issue look out circulars (LOCs) based on conjectures (Puja Chadha v Directorate of Enforcement) . Justice Sachin Datta said that even though the 2021 office memorandum of Ministry of Home Affairs carves out these exceptions, they cannot be invoked loosely and their application must be circumscribed by reasonableness and supported by cogent material. “Although Clause (L) of the 2021 Memorandum carves out an exception permitting issuance of an LOC, inter alia, on grounds relating to the “economic interests of India” and “larger public interest”, it has been held that such an exception cannot be invoked loosely or on the basis of conjecture