SURESH VENKATACHARI Vs. JOINT DIRECTOR, DIRECTORATE OF ENFORCEMENT

JUDGEMENT

(1.) This Writ Petition is filed to issue a Writ of Mandamus directing the respondents to remove the petitioner's name from the data base maintained by them, pertaining to those individuals, who are not allowed to travel abroad and consequently, revoke the Look Out Circular (LOC) erroneously issued qua the petitioner.

(2.) The learned counsel for the petitioner submitted that petitioner is a Singapore Citizen, holding a Singapore Passport bearing No. K2344758P and a resident of the United States of America. He is the Promoter and President of M/s. Securekloud Technologies Limited (formerly known as M/s. 8K Miles Software Limited), Indian Company. He is also the Promoter of M/s. Healthcare Triangle Incorporation, a Nasdaq listed corporation in the USA. Petitioner gave two criminal complaints with CCB, Chennai, against M/s. Quantum Global Securities, M/s. Desert River Capital Private Limited and KSBL Securities Limited in relation to an act of illegal sale of equity shares of M/s. Securekloud Technologies Limited by Narendra Malik, Bhavesh Ram Prakash Singh, Rohit Arora, Ashish Singh, Kalpana Singh and the Directors of M/s. Quantum Global Securities, M/s. Desert River Capital Private Limited and KSBL Securities Limited. The two FIRs were registered on 02/02/2019 and 26/09/2019, in Crime Nos. 39/2019 and 282/2019 respectively.

(3.) Based on the abovesaid FIRs, the Enforcement Directorate opened an ECIR bearing reference No. ECIR/CEZO-1/17/2020. Petitioner was the defacto complainant in the aforesaid Crime Numbers and he was issued summons, dtd. 02/09/2022, 28/10/2022 and 07/12/2022 by the Directorate of Enforcement Department. The officers of the Enforcement Directorate instead of investigating the predicate offence, traversed beyond their jurisdiction, indulged in roving and fishing expedition and expanded their investigation over the pending SEBI cases of petitioner's company M/s. Securekloud Technologies Limited. SEBI cases do not come under the purview of Prevention of Money Laundering Act. Summons were issued to the petitioner in violation to MLAT Guidelines of Government of India. Petitioner travelled to India during October 2022 and appeared before the Assistant Director, Enforcement Directorate, Chennai, on 13/10/2022, 20/10/2022, 27/10/2022, 03/11/2022 09/11/2022, 16/11/2022, 23/11/2022, 14/12/2022, 15/12/2022 and 16/12/2022. Petitioner extended his full co-operation and provided all the necessary documents to the first respondent. The first respondent conducted searches at the petitioner's Indian residence and in his office. Petitioner is in India for more than 120 days, he is now required to travel back to Singapore and USA for business and personal reasons. He has to organize and attend his son's engagement on 18/3/2023 at California, USA. When he proceeded to the Airport on 3/12/2022 to travel back to Singapore, he was stopped at the immigration counter and informed that he cannot travel due to a Look Out Circular issued by the first respondent. Petitioner was utterly shocked to know about the Look Out Circular issued without any basis. He was not informed about the issuance of such Look Out Circular and he was harassed and humiliated despite extending fullest co- operation for the investigation. In the said circumstances, the present petition is filed.