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Delhi High Court Lays Down Comprehensive Principles Governing Look Out Circulars (LOC); Holds Mere Loan Defaults Cannot Justify Travel Restrictions And Grants Relief To Persons Cooperating With Investigation
The Court emphatically reiterated that LOCs cannot be permitted to operate as coercive debt recovery mechanisms at the instance of banks and financial institutions, particularly in cases where no criminal proceedings involving fraud, siphoning of funds, diversion of money, or serious economic offences are pending.
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