Delhi High Court quashes SFIO look out circular against former Jaypee director Sameer Gaur

The Delhi High Court has quashed a look out circular (LOC) issued against Sameer Gaur, former Joint Managing Director of Jaypee Infratech Limited (JIL), in connection with the Serious Fraud Investigation Office (SFIO) probe into Jaiprakash Associates Limited and JIL [Sameer Gaur Vs Union of India]..In a judgment dated May 8, Justice Purushaindra Kumar Kaurav held that there was no material to show that Gaur was a flight risk or that he had failed to cooperate with the investigation.“The purpose of issuance of the LOC, as of now, seems to have been sufficiently served,” the Court observed..The Court added that there was no material against Gaur to indicate any overt act or non-cooperation.“There is no material against the petitioner to indicate any overt act or non-cooperation, therefore, there is no impediment in setting aside the LOC,” the Court said..The verdict was passed on a plea by Gaur seeking quashing of the LOC issued at the instance of SFIO. The agency is investigating the affairs of Jaiprakash Associates Limited and its subsidiary Jaypee Infratech Limited.Gaur had served as director, whole-time director and joint managing director of Jaypee Infratech between 2007 and 2016. He relinquished charge as whole-time director and joint managing director on August 23, 2016. His resignation was accepted by the board of directors on August 31, 2016. He later continued as a non-executive director for some time.The petition by Gaur stated that he had appeared before SFIO on February 22, 2021, when his statement was recorded. He also submitted additional information on March 4, 2021 and responded to later questionnaires..It was also pointed out that LOCs issued against three of Gaur’s family members in connection with the same SFIO investigation had already been set aside by the High Court. These included his siblings Rekha Dixit and Sunny Gaur and his first cousin Pankaj Gaur.During the pendency of the case, Gaur had also been permitted to travel to Spain in May-June 2023 and to Zurich and London in August 2025. The Court noted that he returned to India on both occasions without violating the conditions imposed.The respondents opposed the plea and argued that the seriousness of the allegations warranted continuation of the LOC..After considering the arguments, the Court said the respondents had not placed any material to show that Gaur was a flight risk. It also noted that he had substantial movable and immovable assets in India and that his entire family resides in India.The Court reiterated that an LOC is a coercive executive measure of last resort and cannot be used as a routine tool..The Court, therefore, set aside the LOC.However, it directed Gaur to cooperate with any ongoing or future investigation. It also permitted him to travel abroad without prior permission from the Court subject to him giving his full itinerary to the investigating officer at least seven days before departure.In case of emergency travel, he must intimate the authorities at least 24 hours before leaving India..Gaur was represented by Senior Advocate Gaurav Sarin with advocates Manan Popli, Gaurav Jain, Atul Malhotra, Nupur Sharma, Karuna Sharma, Apurva Gaur, Pramendra Singh, Priya Tripathi and Shaurya Sarin..The government was represented by advocates Rajesh Gogna, Rebina Rai, Punita Jha and Shivam Tiwari..[Read Judgment]