The Delhi High Court has quashed a Bank of Baroda-initiated lookout circular against Rajat Gupta, ruling that an unsubstantiated fear of flight cannot justify an indefinite restraint on travel.
Justice Amit Mahajan noted that the Central Bureau of Investigation had completed its inquiry and filed four charge sheets. Gupta was already on bail, his overseas travel remained subject to the trial court’s permission, and an earlier authorised trip had not been misused. The bank produced no material showing that he was likely to abscond.
The court said a lookout circular is a coercive measure, not a routine consequence of facing trial. The bank’s concern that its financial claim might be jeopardised was insufficient, particularly after the circular issued at the investigating agency’s instance had been suspended.
The order leaves the criminal proceedings, bail conditions and the trial court’s authority over Gupta’s future travel intact.