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The Delhi High Court has ordered suspension of the Look-Out Circular (LOC) issued against Inderpreet Singh Wadhwa, a US citizen and former Independent Director of Blu-Smart Mobility Pvt. Ltd., who is under investigation in connection with alleged large-scale financial irregularities involving Gensol Engineering Ltd.Justice Swarna Kanta Sharma directed that the LOC be kept in abeyance during the pendency of the writ petition, subject to strict conditions, including furnishing of a Rs 25 crore security through Fixed Deposit or Bank Guarantee, and an additional surety of Rs 5 crore from a family member residing in India.The court observed that while the authorities must continue their investigation unhindered, "the petitioner's liberty and professional as well as personal life cannot be placed in indefinite suspension," particularly since it has not yet been determined whether he will be treated as an accused.Appearing for the petitioner, Senior Advocates Pramod Kumar Dubey and Ciccu Mukhopadhaya, assisted by a team of lawyers, argued that the continued operation of the LOC was arbitrary and disproportionate.They contended that Wadhwa, an independent professional with no role in the financial management of Blu-Smart Mobility, had himself raised governance concerns and lodged complaints with the Registrar of Companies prior to the investigation.Live EventsThe petitioner also cited pressing medical and family obligations abroad.Opposing the plea, Meghav Gupta, Special Counsel for the Union of India and the Bureau of Immigration, and Amit Tiwari, CGSC, for the Ministry of Corporate Affairs, argued that the LOC was necessary to ensure the petitioner's availability during an ongoing investigation into an alleged Rs 2,385 crore corporate fraud.Balancing both sides, the court ruled that preventive measures must not become punitive, observing that Wadhwa had voluntarily come to India and cooperated with the authorities.The court directed him to cooperate with the investigation and to provide advance intimation of his travel itinerary, contact details, and address abroad to the authorities. Add as a Reliable and Trusted News Source Add Now! (You can now subscribe to our Economic Times WhatsApp channel) Read More News ongensol engineering ltdDelhi High CourtInderpreet Singh WadhwaGensol Engineering Ltdcorporate fraudfinancial irregularitieslegal proceedingsBank Guarantee (Catch all the Business News, Breaking News and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online....moreless (You can now subscribe to our Economic Times WhatsApp channel)Read More News ongensol engineering ltdDelhi High CourtInderpreet Singh WadhwaGensol Engineering Ltdcorporate fraudfinancial irregularitieslegal proceedingsBank Guarantee(Catch all the Business News, Breaking News and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online....moreless Prime ExclusivesInvestment IdeasStock Report PlusePaperWealth Edition123View all Stories
