SC suspends look out circular against man facing prosecution in CBI, ED cases
The Supreme Court of India suspended a CBI look-out circular against petitioner Nimesh Navinchandra Shah and sought response from the Ministry of Home Affairs, while noting procedural concerns and ongoing prosecution by the Central Bureau of Investigation and Enforcement Directorate
New Delhi: The Supreme Court on Tuesday suspended a look out circular issued by the CBI against a man who is facing prosecution in separate cases lodged by the probe agency and the Enforcement Directorate (ED).
The apex court also issued a notice to the Ministry of Home Affairs (MHA) seeking its response within six weeks on a plea filed by petitioner Nimesh Navinchandra Shah, who has challenged the look out circular (LOC) issued against him by the Central Bureau of Investigation (CBI).
Shah’s counsel told a bench of Justices Vikram Nath and Sandeep Mehta that the LOC was issued by the CBI in 2022 but he was not intimated about it for around three years. The bench went through the LOC dated November 9, 2022 which was placed before it by the CBI.
“We are of the view that the look out circular dated November 9, 2022 shall remain suspended,” the top court said. The bench said the MHA was required to be arrayed as a respondent in the matter in order to decide the issue raised in the petition.
It impleaded the MHA as a party respondent and issued notice to it. The apex court had earlier sought responses from the CBI, the Centre and the Maharashtra government on Shah’s plea challenging a February this year order of the Bombay High Court.
The high court had dismissed his plea seeking the quashing of the LOC issued against him by the CBI.
The high court had noted that in the CBI’s case, Shah and others were accused of causing wrongful loss of Rs 464.41 crore to a consortium of banks.
During the hearing on Tuesday, Shah’s counsel told the bench that the LOC was issued against the petitioner in 2022 but till May 2025, he was not intimated about it. The CBI’s counsel referred to an office memorandum concerning the issuance of the LOC. “You have to implead the Ministry of Home Affairs,” the bench told the petitioner’s counsel.
On April 21, the petitioner’s counsel had told the apex court that the LOC was never served upon him.
The bench had then granted a week to the CBI to file an additional affidavit, in particular, a copy of the LOC. In its order, the high court had noted that the court cannot be oblivious of the registration of a case against Shah by the CBI and the filing of a prosecution complaint by the ED.
“The offence of siphoning of public money must be viewed very seriously by the court because such offences seriously challenge the financial stability of the country,” the high court had said while dismissing his plea.
