Karnataka HC grants conditional travel permission to NRI businessman BR Shetty

The Karnataka High Court has granted conditional permission to NRI businessman Bavaguthu Raghurama Shetty, commonly known as B R Shetty, to travel to the UAE to reunite with his family and associates. This order, issued by Justice Krishna S Dixit, entails the suspension of various lookout circulars (LOCs) against Shetty.

However, the court’s directive comes with strict stipulations. Shetty is prohibited from selling, encumbering, or interfering with any of his properties worldwide, including any disclosed or undisclosed interests. Additionally, he must submit an affidavit along with two sureties, each valued at Rs 1 crore, promising to return to India for legal proceedings whenever required and not to leave the country without the court’s prior permission.

Justice Dixit underscored that Shetty should not resist any legal proceedings initiated under laws like the Fugitive Economic Offenders Act of 2018 or the Extradition Act of 1962. This order follows Shetty’s earlier plea, where he expressed doubts about the objectivity of his request for the recall of LOCs during his interaction with banks.

Shetty is reported to owe Rs 2,324 crore to the Bank of Baroda as a personal guarantor, with the bank securing a decree from Abu Dhabi courts against him for approximately Rs 831 crore worth of assets. The bank has initiated recovery proceedings against him, arguing that his presence in India is crucial to prevent the futility of loan recovery efforts.

Justice Dixit questioned the rationale behind opposing Shetty’s travel when a Mareva Injunction Order, freezing his assets, is already in place. This raises doubts about how Shetty’s temporary departure to attend to personal matters abroad would impede the loan recovery process.