Gujarat High Court Allows Bank Fraud Accused to Travel Abroad, Bank of Baroda had issued LOC Against Him

In a significant development, the Gujarat High Court has granted permission to Sunil Kakkad, Director of Sai InfoSystem (India) Ltd, to travel to the United Arab Emirates (UAE) between June 7 and June 27, 2025. Kakkad is an accused in a multi-crore bank fraud case and is currently under investigation by the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED).

Who is Sunil Kakkad?

Sunil Kakkad is the promoter and director of Sai InfoSystem (India) Ltd, an IT company that allegedly cheated several public sector banks of huge sums of money. He was arrested in 2014 in Liberia, and since then, multiple legal proceedings have been ongoing against him in India. A Look Out Circular (LOC) was also issued by Bank of Baroda, one of the banks that lent money to his company.

Why Was He Allowed to Travel?

Kakkad had approached the court with a request to travel to the UAE to explore business opportunities, particularly with companies looking to outsource IT backend support and ERP (Enterprise Resource Planning) software services to India. His lawyer claimed that he had already received purchase orders and needed to travel to the UAE to ensure successful implementation.

The Bank of Baroda opposed the plea, arguing that Kakkad had not repaid any of the loans taken by Sai InfoSystem and feared he might try to flee from justice. The bank’s lawyer also claimed that he was avoiding repayment of large amounts by misusing the legal system.

Kakkad’s legal team, however, argued that the court had previously allowed him to travel abroad and that on each occasion, he had submitted a separate undertaking and complied with all conditions.

What Did the High Court Say?

Justice Devan M. Desai considered the arguments from both sides and noted that no serious objection was raised by other respondents. He ruled that Kakkad could travel abroad on certain strict conditions, including:

• Kakkad must deposit ₹25 lakh with the Gujarat High Court in the form of a Demand Draft. This amount will be returned after his return.
• He must not open or close any bank accounts overseas.
• He must not enter into any property deals abroad.

Concerns from the Bank

The Bank of Baroda expressed concern that Kakkad might use this permission to escape from India, delaying court proceedings and avoiding his repayment obligations. They pointed out that he had submitted a repayment plan of just ₹50 lakh (in an affidavit dated August 28, 2024), while the total outstanding claimed by creditors is nearly ₹2,947 crore. This proposal was rejected by all creditors, with the deadline for voting ending on October 15, 2024.

Conclusion

This case has once again brought attention to how high-profile financial fraud cases are handled in India. While courts allow travel for legitimate business purposes under conditions, banks and creditors remain worried about delays in justice and recovery of public money. Sunil Kakkad’s trip to the UAE will now be closely watched to ensure he returns as promised and cooperates with ongoing investigations.

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