Aircel Founder C Sivasankaran moves Madras High Court to recall LOC

Aircel Founder C Sivasankaran moves Madras High Court to recall LOC
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C Sivasankaran, founder of the now defunct Aircel mobile network company, has moved the Madras High Court challenging a Look out Circular (LOC) issued against him by the Bureau of Immigration on a request by the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED).

Justice AD Jagdish Chandira has issued notice in the matter after admitting it on Tuesday. The Court has asked the Union Home Ministry, the CBI and the ED to file their responses within two weeks.

The LOC was issued in relation to a case of fraud entailing over Rs 600 crores worth loss for the IDBI Bank. It stems from loans extended by top officials at IDBI in violation of external guidelines and norms to two companies i.e. Win Wind Oy and Axcel Sunshine Limited.

After a loan worth Rs 393 crores extended to Win Wind Oy was declared a Non Performing Asset (NPA), IDBI is said to have further disbursed another loan worth Rs 530 crores to Axcel Sunshine Limited. Both companies are said to be part of the Siva Group of companies. An FIR in the case was lodged in October 2017 on the Chief Vigilance Officer’s directions.

However, in his affidavit, Sivasankaran has contended that his name has been wrongly included in the FIR filed in the case, and that the LOC would disrupt his obligations as Ambassador-at-Large of the Republic of Seychelles. As per his affidavit, Sivasankaran is a national of Seychelles and has been a diplomat of the country since 2008.

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