Look-Out Circular (LOC) Issue in India (GS Paper 2, Polity & Governance)
Look-Out Circular (LOC) Issue in India
(GS Paper 2, Polity & Governance)
Why in News?
- The Bombay High Court has ruled against public sector banks (PSBs) recommending or requesting Look-Out Circulars (LOCs) against loan defaulters, citing violation of fundamental rights.
Key Points:
- Clause Controversy: A clause from 2018 allowed heads of PSBs to request immigration authorities for LOCs against default borrowers.
- High Court Observations: Quashed LOCs issued against PSB debtors, calling them "strong-arm tactics" violating fundamental rights under Articles 14 (Equality before Law) and 21 (Protection of Life and Personal Liberty) of the Constitution.
- Rights Violation: Executive actions curbing the right to travel abroad without statutory backing violate constitutional rights, especially when limited to PSBs.
- Existing Restraints: The ruling doesn't affect restraint orders by competent authorities like courts, Debt Recovery Tribunals, or investigative agencies.
Look-Out Circular (LOC) Overview:
- Purpose: Prevent individuals wanted by law enforcement from leaving the country.
- Issuing Authority: Designated officers including those from Interpol and public sector banks (as per the controversial clause).
- Actions: Can merely stop travel or lead to detention and arrest.
- Modification/Withdrawal: Only the Bureau of Immigration can act on specific requests from the originator.
Controversy over Nepal Currency Notes
Issue:
- Nepal introduced a new Rs 100 currency note depicting contested territories of Lipulekh, Limpiyadhura, and Kalapani, sparking territorial disputes with India.
Key Details:
- Territorial Dispute: India and Nepal contest ownership of Lipulekh, Kalapani, and Limpiyadhura, covering 370 sq km.
- Lipulekh Pass: A strategic area connecting Uttarakhand, Tibet, and China, highlighted in India-Nepal territorial disputes.
- Development Activities: India's road inauguration in 2020 for Kailash-Mansarovar pilgrimage via Lipulekh triggered tensions.
Indo-Nepal Issues:
- Lipulekh Pass: Strategic location triggering territorial disputes and infrastructure developments.
- Development Activities: India's infrastructure projects impacting India-Nepal relations and territorial disputes.
- Border: Nepal shares over 1,850 km border with Indian states like Uttarakhand, Uttar Pradesh, and others, influencing bilateral relations.
Conclusion:
- The controversies over territorial claims and infrastructure developments in border regions underscore the delicate nature of India-Nepal relations, highlighting the need for diplomatic dialogue and resolution.
