Delhi High Court suspends LOC against former BluSmart director subject to ₹25 crore security deposit

The Delhi High Court on Monday suspended the Look-Out Circular (LOC) issued against Inderpreet Singh Wadhwa, former Independent Director of BluSmart Mobility, a company under investigation for alleged financial irregularities linked to the Gensol Group [Inderpreet Singh Wadhwa v Union of India & Ors]. .Justice Swarana Kanta Sharma passed the order after noting that detaining a foreign national indefinitely in India without established culpability would be unjustified.The Court ordered him to furnish a security of ₹25 crore along with a surety of any of his family members in the sum of ₹5 crore. He was also directed to cooperate with the investigation and provide details about his itinerary to the Indian authorities. "The petitioner shall furnish his mobile number, e-mail address, and complete residential address in Switzerland to the respondents, and shall promptly notify any change in these particulars during the pendency of the proceedings," the Court said. .Wadhwa, a US citizen residing in Switzerland, was stopped at Delhi’s IGI Airport on August 4 when he attempted to leave India. Authorities had issued an LOC in May 2025 amid investigation into an alleged ₹2,385 crore fraud involving Gensol Engineering Ltd and related entities. The Ministry of Corporate Affairs and the Securities and Exchange Board of India (SEBI) have alleged large-scale diversion of public funds and misuse of corporate money by the group’s promoters.Wadhwa told the Court that he was merely a non-executive director and later an independent director at BluSmart Mobility, with no role in its financial or operational management. He maintained that BluSmart and Gensol were distinct companies sharing only common promoters, and that he had, in fact, been a whistleblower. The government opposed the plea, asserting that the LOC was legally justified and necessary to prevent Wadhwa from absconding..Senior Advocates Pramod Kumar Dubey and Ciccu Mukhopadhaya with advocates Saurav Agarwal, Ritika Jhurani, Apoorve Vashistha, Joy Banerjee, Satyam Sharma, Prachi Dubey, Abhishek Kandwal, Ujwal Sharma, Harsh Khabar, Ramachandruni B Siddhartha, Tushar Nair, Yash Saxena, Khushi Arora, Karl P Rustomkhan, Parv Arora, Shivam Kumar, Suchitra Kumbhat and Abhilasha Pathak appeared for Inderpreet Singh Wadhwa. Special Counsel Meghav Gupta, Central Government Standing Counsel Amit Tiwari as well as advocates Ayushi Srivastava, Ayush Tanwar and Arpan Narwal represented the respondents. .[Read Order]