The circular was issued to prevent Karti from leaving the country and to inform the CBI if any such effort is made by him, government sources said here today.
They said the circular was issued in the third week of June.
The circular is issued to alert immigration authorities that a travelling person has a pending investigation against him. The subsequent action to detain him, stop him or inform the authorities depends on the nature of the circular.
Karti today approached the Madras High Court seeking quashing of the circular claiming it was part of the central government's "political vendetta".
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When the matter came up for hearing before Justice D Duraiswamy, he adjourned it to August 7 after Additional Solicitor General G Rajagopalan sought time to get instructions on whether such a circular had been issued.
The CBI had registered the case on May 15 against Karti, his company Chess Management Services, INX Media, Advantage Strategic Consulting Services, its director Padma Vishwanathan and Indrani and Peter Mukerjea.
The Mukerjeas, charged with the murder of Indrani's daughter, Sheena Bora, are currently in jail.
Former Finance Minister and Karti's father P Chidambaram had issued a strong statement in response to the FIR, saying that the government was using the CBI and other agencies to target his son.
"The government, using the CBI and other agencies, is targeting my son and his friends...The government's aim is to silence my voice and stop me from writing, as it has tried to do in the cases of leaders of opposition parties, journalists, columnists, NGOs and civil society organisations," he said.