Madras HC quashes CBI's look out circular against Karti Chidambaram

A bench comprising Chief Justice Indira Banerjee and Justice Abdul Quddhose gave the order allowing a petition by Karti challenging the LOC issued last year.

It, however, said the Central Bureau of Investigation can take further action based on the FIR registered against Karti in the case.

The case relates to alleged irregularities in the Foreign Investment Promotion Board (FIPB) clearance to INX Media for receiving overseas funds to the tune of Rs 305 crore in 2007 when Chidambaram was the Union finance minister.

The CBI, which filed the FIR on May 15 last year, had arrested Karti on February 28 this year at the Chennai airport on his arrival from London. He was granted bail by the Delhi High Court on March 23.

The LOC was issued by the Bureau of Immigration and the Foreigner Regional Registration Officer (FRRO), under the Union Home Ministry, at the request of the CBI to prevent Karti from travelling abroad.

During the pendency of the petitions, the high court had permitted Karti to fly to Europe on a business tour but asked him to return home by February 28.

Initially, a single judge bench of the Madras High Court had stayed the LOC, but on an appeal by the CBI the apex court had put on hold operation of the HC order on August 10 last year.

On January 31, the Supreme Court remanded back to the Madras High Court the matter with a request to dispose it of within two months.

Accordingly, the first bench headed by Justice Banerjee heard the matter and had reserved orders on March 19.

In his petition, Karti had contended that the look out circular was part of the central government's "political vendetta" and issued "arbitrarily" and without jurisdiction to prevent him from travelling abroad.