Chennai: The Madras High Court on Thursday stayed the 'look out circulars' issued against former Union minister P Chidambaram's son Karti Chidambaram and four others by the Centre over a corruption case filed by the CBI, holding that they were prima facie "unwarranted".
Justice M Duraiswamy granted the interim stay when petitions filed by Karti and others seeking to quash the circulars came up for hearing, and directed the central government to file its counter by September 4.
Karti's associates C B N Reddy, Ravi Viswanathan, Mohanan Rajesh and S Bhaskararaman also got the interim relief.
Noting that the impugned circular had been issued just a day after the notice was sent under relevant CrPC sections asking Karti to appear on June 29 for questioning, the judge said, "this...According to this court, is prima facie unwarranted".
In the case of other four petitioners also, the circulars were issued even before the date of their appearance before investigating officers, which was also prima facie "unwarranted", he said.
The petitioners had made out a prima facie case for the grant of interim stay. "Therefore, the impugned 'look out circulars' should be stayed till the disposal of the writ petitions," Duraiswamy said in his interim order.
He, however, made it clear that the petitioners shall co-operate with respondents at the time of enquiry, and in case of overseas travel inform the investigating officer in writing about the date of departure and arrival at least three days in advance.
The Foreigner Regional Registration Officer (FRRO) and the Bureau of Immigration under the Union home ministry had issued the circulars against Karti on June 16 last and against the four others on July 18.
In his petition, Karti contended that the look out circular was part of the central government's "political vendetta" and issued "arbitrarily" without jurisdiction to prevent him from travelling abroad.
He also said he had responded to the summonses issued by the CBI in connection with the case and there was "no absolute cause of action" for issuance of the circular.
The case is related to alleged irregularities in the Foreign Investment Promotion Board (FIPB) clearance to INX Media for receiving overseas funds when Karti's father was the Union finance minister in 2007.
CBI had claimed that the FDI proposal of the media house was "fallacious" but Chidambaram had cleared it.
The FIR dated May 15, 2017 was registered before the special judge, Prevention of Corruption Act, CBI, Patiala House, New Delhi. It was followed by searches at residences and offices of Karti and his friends, on May 16, 2017. The look out circular was issued on?June 16.
Opposing Karti's plea, the Centre had told the court that after the experience of liquor baron Vijay Mallya leaving the country, it had become imperative for it to issue the look out circular against him (Karti).
Countering this, Karti said the CBI and the home ministry cannot cite past experience with certain persons who were not cooperating in investigation for issuing the circular against him.
He charged that the central government had been pursuing a "politically motivated vendetta" against his family and all persons even remotely connected to him were being targeted.
Claiming that the FIR, which he has challenged in court, had been filed based on "conjectures, inferences and surmises and not based on truth", he said the circular was based on it and was also liable to be set aside.
Incidentally, Karti has filed a fresh petition seeking quashing of the circular since the earlier one filed on August 4 had mentioned the date of the circular as July 18 in respect of him.
During the previous hearing on August 7, the judge had directed Additional Solicitor General G Rajagopalan, who appeared for the Centre, to furnish a copy of the look out circular to Karti and adjourned the matter today.
Based on the copy of the circular, Karti filed a fresh petition which also came up for hearing today.
Senior Supreme Court counsel Gopal Subramaniam and Satish Parasaran, representing the petitioners, and the ASG made elaborate arguments following which the judge passed the interim order staying the circulars.
Subramaniam contended that the impugned look out circulars had been issued without any necessity whatsoever and without following any procedures. The circulars were issued only to tarnish the image of the petitioners, he charged.
Referring to the issuance of the circulars a day after the notice asking Karti to appear for questioning, he said this itself would establish the "mala fide intention" of the respondents in "harassing the petitioners and tarnishing their image."
The senior counsel further said the petitioners shall not abscond or leave India permanently with a view to preventing the respondents from investigating the alleged offences.
Sathish Parasaran, who appeared for the other petitioners, submitted that they were in no way connected with the alleged offences.
ASG Rajagopalan said the apprehension of the government was that the petitioners may leave India permanently and may also tamper with the evidences if they were allowed to go abroad.
