Question 1

What is a Lookout Circular (LOC)?

Accepted Answer

An LOC is a circular issued by authorities (such as the CBI, ED, Police, or public sector banks) to immigration check posts to prevent individuals suspected of crimes or significant financial defaults from leaving the country.

Question 2

Can a bank issue an LOC against a loan defaulter?

Accepted Answer

Yes, under certain government guidelines, heads of Public Sector Banks can request the issuance of an LOC against wilful defaulters or fraudsters if their departure is deemed detrimental to the economic interests of India.

Question 3

On what grounds can an LOC be challenged or quashed?

Accepted Answer

An LOC can be challenged via a Writ Petition in the High Court on grounds of being arbitrary, issued without proper authority, violative of the fundamental right to travel (Article 21), or if it continues indefinitely without a formal criminal case or sufficient justification.

Lookout Circular Quashing

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