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Banks (Finance)

Bombay High Court Suspends CBI's Look Out Circular against Manish Mandhana

Strategic Insights

— 1 min read

The Bombay High Court has taken a significant step by suspending the Look Out Circular (LOC) issued by the CBI against Manish Mandhana, a former director of Mandhana Industries Ltd, who has been accused in a bank loan fraud case. The court's decision comes after Mandhana's lawyers informed the court that he was prevented from traveling abroad due to another LOC issued at the instance of the CBI. The court has also allowed Mandhana to travel abroad, subject to certain conditions, and has directed the immigration authorities to permit his travel.

Key Takeaways:

  • The Bombay High Court has suspended the Look Out Circular (LOC) issued by the CBI against Manish Mandhana, a former director of Mandhana Industries Ltd, who has been accused in a bank loan fraud case.
  • The court has allowed Mandhana to travel abroad, subject to certain conditions, after his lawyers informed the court that he was prevented from traveling due to another LOC issued at the instance of the CBI.
  • The Enforcement Directorate (ED) had also started its probe based on the CBI FIR against Mandhana and his accomplices.
  • The accused persons allegedly hatched a criminal conspiracy to cause losses to banks for wrongful gain by diverting loan funds through fraudulent transactions.
  • The CBI FIR has alleged that the accused persons defrauded the banks to the tune of Rs 975.08 crore.
  • The court has clarified that its order would not apply to any other LOC or restraint order, if any, issued by any other authority.
  • The matter has been posted for compliance on June 12.

Statistics:

  • Rs 975.08 crore: The amount allegedly defrauded by the accused persons from the banks.
  • Rs 975.08 crore: The amount for which the Enforcement Directorate (ED) had started its probe.
  • 3: The number of accused persons in the CBI FIR who have been accused of hatching a criminal conspiracy to cause losses to banks.
  • 2: The number of LOCs issued against Manish Mandhana, one by the Bank of Baroda and another by the CBI.
  • 12: The date on which the matter has been posted for compliance.

Sources:

  • "Express News Service" - The Bombay High Court on Tuesday suspended the Look Out Circular (LOC) issued by the CBI against Manish Mandhana...
  • "Contify.com" - The HC has posted the matter for compliance on June 12.

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