HC quashes look-out notice against actor Anuj Saxena in bribery case

The LOC, issued in 2021, had barred Saxena from travelling abroad in connection with an investigation into alleged corporate irregularities at Elder Pharma, where he was COO.

MUMBAI: Mumbai: The Bombay High Court has quashed a Look-Out Circular (LOC) issued by the Serious Fraud Investigation Office (SFIO) against television actor and Elder Pharmaceuticals chief operating officer (COO) Anuj Saxena, observing that the notice cannot be kept pending indefinitely since he has cooperated with the investigation.

Mumbai - 18th July 2010 - Anuj Saxena - Film mahurat of One And Only at Madh Island - Photo by Amlan Dutta (Hindustan Times)

The LOC, issued in 2021, had barred Saxena from travelling abroad in connection with an investigation into alleged corporate irregularities at Elder Pharma. The SFIO operates under the Ministry of Corporate Affairs and investigates complex corporate frauds assigned under the Companies Act.

Saxena had approached the high court in 2023, seeking to quash the LOC. He first came under the Central Bureau of Investigation’s scanner in 2016, when he was named as an accused in connection with an alleged bribery case, which also involved the late BK Bansal, who was the director-general of corporate affairs at the time.

In 2017, the CBI had claimed that Saxena approached Bansal to stop an investigation against Elder Pharma, which was accused of duping 24,000 investors of ₹176 crore through a fraudulent investment scheme. The agency alleged that Saxena offered Bansal a bribe of ₹20 lakh to prevent an investigation into his company’s affairs, including diverting funds to firms abroad and failing to file returns on time.

The case took a tragic turn in September 2016, when Bansal, who was out on bail, and his 25-year-old son, Yogesh, died by suicide. In a purported suicide note, Bansal and his son accused certain CBI officials of “harassment and mental torture”. Two months earlier, in July 2016, Bansal’s wife, Satyabala, and daughter, Neha, had also died by suicide after a CBI raid on their home.

Subsequently, in 2017, Saxena surrendered before a Delhi court. Two years later, in November 2019, the Bombay High Court directed the SFIO to investigate the affairs of Elder Pharma. Accordingly, the authorities issued an LOC against Saxena.

During the hearing on November 7, Saxena urged the court to quash the LOC against him so that he could travel overseas. He stated that he had abided by the terms and conditions stipulated by the court earlier and cooperated with the investigators. He further submitted an undertaking that he would share his travel itinerary with the investigating officer and inform them of his return within 78 hours of returning to India.

The SFIO informed the bench that it had completed its inquiry in March and submitted its findings to the Ministry of Corporate Affairs in May, in order to obtain the necessary sanction for filing a complaint against Saxena.

Noting that there is no apprehension of Saxena being a flight risk, a division bench of justices Revati Dere and Sandesh Patil set aside the 2021 LOC against him. “We may note that the LOC cannot be kept pending indefinitely, more particularly when the petitioner has cooperated with the investigation and there is no apprehension expressed by the SFIO that the petitioner is a flight risk. It appears that the petitioner is a permanent resident of Mumbai, and is required to travel overseas in connection with his work,” the court said.

The court also directed Saxena to keep the investigating officer informed about his travel plans, including his stay and contact details abroad. It clarified that Saxena’s undertaking will remain valid for six months and instructed the SFIO to notify the immigration authorities of the order.