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A Delhi court has cancelled a look-out circular (LOC) issued against Akash Gupta, an accused in an alleged Rs 247-crore fraud case involving Punjab National Bank (PNB). The case was registered by the Central Bureau of Investigation (CBI). The court said that the seriousness of the allegations alone cannot justify keeping a look-out circular in place and that the possibility of an accused fleeing the country must be considered separately.
Special Judge Dinesh Kumar of the Rouse Avenue Courts was hearing Gupta’s plea seeking cancellation of the circular. Gupta told the court that he was stopped at the immigration counter at Bengaluru airport while preparing to travel to Australia to secure admission for his son to an educational institution. He said he learnt about the look-out circular for the first time during the incident. He also argued that the court had previously permitted him to travel abroad, and he had followed all the conditions and returned to India within the permitted period. He further submitted that he had cooperated with the investigation.
Background of Case
The ₹247.84-crore bank fraud case involves allegations of systemic cheating, fund siphoning, and financial irregularities committed against Punjab National Bank (PNB).
The Central Bureau of Investigation (CBI) registered the case based on a complaint by PNB against a Delhi-based metal and manufacturing firm, Apple Industries Limited, which operated in the production and trading of sponge iron and billets.
The FIR names the company’s promoters and directors, including Pawan Kumar Garg, Narendra Kumar Garg, Yogender Kumar Garg, Ashish Garg, and Akash Gupta (who was a non-shareholding director and loan guarantor).
PNB’s forensic audit and the subsequent CBI probe alleged that the accused committed criminal breach of trust, cheated the consortium, and fabricated corporate and financial documents to manipulate credit facilities. These actions resulted in an illegal diversion and siphoning of substantial bank funds, causing a wrongful loss of ₹247.84 crore to the public sector bank.
In 2025, Akash Gupta and other co-directors filed petitions before the Delhi High Court challenging PNB’s decision to label the accounts as fraudulent. The court highlighted that banks cannot arbitrarily label a commercial loan account as “fraud” simply because a borrower misses a deadline or fails to respond to a show-cause notice. The court remarked that banks are mandated by law to provide independent, highly specific, and legally reasoned findings before imposing such severe financial tags.
What court said?
In an order dated October 7, the court noted that the investigating agency had already filed its final report in the case and that Gupta had not been arrested during the investigation. The judge said the agency was required to explain why continued restrictions on Gupta’s foreign travel were necessary. The court also observed that Gupta’s return to India after an earlier permitted foreign trip supported his claim that he had no intention of evading the legal process.
The court said that although the allegations involved the alleged diversion and siphoning of substantial bank funds, the seriousness of an economic offence and the likelihood of an accused absconding were two separate issues. It observed that a person accused of a serious financial crime could not automatically be considered a flight risk simply because he wanted to travel abroad. The judge also said that an individual’s liberty should not be restricted on the basis of an unsupported assumption by the investigating agency.
While cancelling the look-out circular, the court said the CBI’s concerns could be addressed through appropriate travel and appearance conditions. Gupta has been directed to submit an affidavit undertaking to cooperate with any further investigation. He must provide the agency with his complete travel itinerary, including flight details and contact information abroad, at least seven days before any foreign trip. He must also share a copy of his passport and provide his current residential address, mobile number and email address, informing the agency of any changes.
The court further directed Gupta to return to India within the period mentioned in his travel itinerary and appear before the trial court whenever required. He cannot seek adjournments on the ground that he is travelling abroad. The CBI has also been directed to inform the Bureau of Immigration about the cancellation and ensure that the look-out circular is removed from its records.
The court clarified that the CBI can seek a fresh look-out circular from the competent authority if Gupta violates any of the conditions or if new evidence emerges indicating a genuine risk that he may evade the legal process. The cancellation of the circular does not amount to a finding that Gupta is innocent of the allegations in the alleged Rs 247-crore PNB fraud case.
