The Gujarat High Court has suspended the lookout circular (LOC) issued against stockbroker Mahendra Shah and his son Megh Shah, who are accused in a multi-crore gold assets scam. The duo, currently in Dubai, have expressed their intention to return to India. The court's decision follows a Supreme Court order last month that stayed their arrest.
Background of the Case
Mahendra Shah and his son Megh Shah, both stockbrokers, came under the scanner last year when the state Anti-Terrorist Squad (ATS) and the Directorate of Revenue Intelligence (DRI) raided their locked apartment in Paldi, Ahmedabad. The agencies seized 95.5 kilograms of gold valued at crores of rupees. The father-son duo are wanted by multiple investigating agencies in connection with the alleged scam.
Petition Against Lookout Circular
The petitioners approached the Gujarat High Court seeking the suspension of the LOC. Their counsel, Siddharth Kheskani, argued that they had already made representations to the Bureau of Immigration under the Ministry of Home Affairs, the DRI, and the ATS, highlighting the Supreme Court's protective order. The apex court had directed that the applicants not be arrested as long as they cooperate with the investigation. On this basis, the counsel sought a stay on the LOC, citing the petitioners' plan to return from Dubai.
Opposition from DRI
The DRI opposed the pleas, contending that the Supreme Court's orders were being relied upon out of context. However, after hearing the arguments, Justice P. M. Raval observed, "Considering the orders passed by the apex court granting protection to the present applicants, as aforesaid, it would be in the fitness of things if the execution of lookout circular qua the FIR in questions, be suspended till the returnable date, keeping open all the rights, contentions of the parties before the apex court as and when the matters come up for hearing."
Next Hearing
The High Court has posted the further hearing of the case for June 29. Meanwhile, the suspension of the LOC allows the Shahs to return to India without the risk of immediate arrest, subject to their continued cooperation with the investigation.
