Ministry of Corporate Affairs (MCA) has recently reviewed a list of individuals and corporates under the scanner over potential cases of financial irregularities. The ministry has referred over 80 names under various categories of look out circulars (LOC) after the review, government sources said.

The move would help the government keep a close watch on these people and entities.

“The list was reviewed at the top most level of the ministry after which it was sent to the Ministry of Home Affairs for suitable action,” the sources said.

The review conducted by the MCA was of people and corporates who are under the lens on account of potential irregularities.

There are 3 categories of LOC. The first category is where the person can be detained as soon as he/she is reported to have entered the airport since the government feels there is a potential flight risk and the person can run away from the country and should be put in jail.

The second category is where the person is stopped from going outside the country and the government has a clear instruction that the department which has requested for the LOC should be intimated immediately and he/she should be stopped but should not be put behind the bars.

And the third category is where the government wants to just keep a close watch on the flight movement of the person under the scanner on each and every entry and exit from the country.

Government sources have also indicated that “MCA has made reference of people only in the last two categories of LOC, out of which over 20 names are in the second category of LOC and the remaining are in the third category.”

Sources indicated that the aim behind such a review is that the government wants to closely monitor movements of a lot of corporates and people linked to irregularities to avoid any trouble. #casansaar (Source - CNBC TV18)