Travel rights cannot be revoked in this manner... banks acting as judge and executioner: HC
The ruling denounced the arbitrary nature of PSBs issuing LOCs to high-profile borrowers such as Vijay Mallya, Nirav Modi, and Mehul Choksi. It highlighted the need for legal safeguards and due process in such matters, ensuring the protection of fundamental rights for all citizens
prativad
The Bombay High Court has ruled in a landmark decision to overturn the authority that the Center had given public sector banks (PSBs) to issue lookout circulars (LOCs) against defaulters. The practice was denounced by the court, which said that PSBs had violated fundamental rights by acting as both judge and executioner.
The division bench of Justices Gautam Patel and Madhav Jamdar emphasized that the fundamental rights protected by Article 21 were violated by PSBs' issuing of LOCs, particularly the right to personal liberty and the freedom to travel overseas. The reasoning behind the court's decision, which was made public on Thursday, emphasized how unlawful the presidential action was that restricted these rights.
The judgment, which came in response to pleas challenging the constitutional validity of LOCs issued by the Ministry of Home Affairs at the behest of PSBs, invalidated over 100 such circulars.
The ruling denounced the arbitrary nature of PSBs issuing LOCs to high-profile borrowers such as Vijay Mallya, Nirav Modi, and Mehul Choksi. It highlighted the need for legal safeguards and due process in such matters, ensuring the protection of fundamental rights for all citizens.
The court stressed upon the excessive power wielded by PSBs and the deprivation of citizens’ rights, calling for adherence to legal procedures in dealing with economic offenders.
Furthermore, the Bombay High Court restricted the Bureau of Immigration from acting on PSB-issued LOCs, providing clarity on the implications of the Debt Recovery Tribunal (DRT) and the Fugitive Economic Offenders (FEO) Act.
