The Supreme Court on Tuesday suspended a Look Out Circular (LOC) issued by the Central Bureau of Investigation (CBI) against Nimesh Navinchandra Shah, an accused facing prosecution in separate cases registered by the CBI and the Enforcement Directorate (ED). While providing interim relief to the petitioner, the bench also sought a response from the Ministry of Home Affairs (MHA) regarding the procedures surrounding the issuance of such circulars.
The legal battle stems from a February 2024 order of the Bombay High Court, which had dismissed Nimesh Navinchandra Shah’s plea to quash the LOC. The CBI’s case alleges that Shah and others were involved in causing a wrongful loss of ₹464.41 crore to a consortium of banks.
In its dismissal, the High Court had emphasized the gravity of the allegations, stating, “The offence of siphoning of public money must be viewed very seriously by the court because such offences seriously challenge the financial stability of the country.” Shah subsequently challenged this order before the apex court.
Appearing for Shah, counsel argued that the LOC was issued by the CBI as far back as November 9, 2022. However, the petitioner contended that he was kept in the dark regarding its existence for nearly three years, only becoming aware of it in May 2025. On April 21, Shah’s legal team informed the court that the LOC was never officially served upon him, prompting the bench to direct the CBI to produce the document.
The CBI, represented by its counsel, referred to an office memorandum that governs the issuance of LOCs to justify their actions.
During the hearing, the bench comprising Justices Vikram Nath and Sandeep Mehta examined the physical copy of the LOC dated November 9, 2022, which was placed before it by the CBI.
The bench observed that to effectively decide the issues raised in the petition—specifically regarding the lack of intimation to the accused—the Ministry of Home Affairs needed to be a party to the proceedings. “We are of the view that the look out circular dated November 9, 2022 shall remain suspended,” the court remarked while granting interim stay.
The court subsequently impleaded the MHA as a respondent and issued a notice seeking its response within six weeks. This follows previous notices issued to the CBI, the Central Government, and the Maharashtra Government.
The Supreme Court has stayed the operation of the CBI’s LOC against Nimesh Navinchandra Shah until further orders. The matter will be further deliberated after the Ministry of Home Affairs files its response.
