Calcutta High Court Refuses To Quash LOC Against Former Elder Pharma Employee In ₹1,300 Crore SFIO Probe
The Calcutta High Court has refused to quash a Look Out Circular issued against Debanjan Hazra, a former employee of Elder Pharmaceuticals now settled in China, in connection with an SFIO probe into the alleged siphoning of Rs 1,300 crore from the company.
Justice Krishna Rao delivered the judgment on February 13, 2026 while hearing a writ petition filed by Hazra challenging the LOC dated February 7, 2025.
“In view of the above, this Court did not find any justification to set aside or quash the Look Out Circular against the petitioner.”, the court said.
Debanjan Hazra a chemist by profession, had worked with Elder Pharmaceuticals between 2006 and 2009 before moving to China in 2013. On December 21, 2025, he was stopped at NSCB International Airport, Kolkata while attempting to travel to Bangladesh and was informed that an LOC had been opened against him in connection with the SFIO probe
The investigation was ordered on December 12, 2019 by the Ministry of Corporate Affairs directing SFIO to probe the affairs of Elder Pharmaceuticals. A report submitted by a court commissioner appointed by the Bombay High Court had revealed siphoning of approximately Rs. 1,300 crore. It was also found that the company defaulted in repayment of public deposits amounting to Rs. 176.59 crore affecting 23,946 deposit holders
SFIO alleged that Hazra was associated with overseas entities and played a role in transactions involving diversion of around Rs. 215 crores routed through foreign subsidiaries
The court observed that Hazra had already settled in China, failed to respond to summons sent through email in February 2025, and did not cooperate fully despite assurances to submit documents. It said that there was a very chance that he may evade proceedings if prosecution were initiated under Section 212 of the Companies Act.
“Considering the above, this Court finds that the petitioner has left India and settled in China. Inspite of receipt of summons through email, the petitioner failed to appear before the Investigating Agency. Even when the petitioner came to India, failed to meet the Investigating Agency. Now, the petitioner intending to go to China through Bangladesh.”, the court observed.
Declining to interfere with the LOC, the court dismissed the writ petition.
For Petitioner: Senior Advocate Sabyasachi Chaudhury with Advocates Rajarshi Dutta, Pranav Sharma, Sahadat Ali, Deepesh Sharma, Mrinmay Mukherjee, Arka Biswas
For Union of India: Senior Advocate Kumar Jyoti Tewari with Advocates Arijit Majumdar, Piyush Kumar, Isabella Pal, Venketeshwar Sonkar