LOCs in bank loan default cases can only be issued if there is larger impact to the economic interest of India: DHC

The Delhi High Court (DHC), in a writ petition filed for quashing of Look-Out Circular (LOC) issued against the petitioner at the behest of the IT Department, has held that such LOCs cannot be resorted to in each and every case of bank loan defaults or credit facilities availed for business etc. it can only be issued on ground of “detrimental to economic interest” when it involves offence having larger impact of the country, in situations such as cases involving “Squandering of public money, siphoning off amounts taken as loans from banks, defrauding depositors, indulging in hawala transactions may have a greater impact as a whole..