I hope the below given information helps...
LOC is interpreted as a communication received from an authorized Govt. agency with reference to a person who is wanted by that agency for fulfillment of a legal requirement,
1. To secure arrest of person evading arrest,
2. To nab proclaimed offender,
3. To facilitate court proceeding by securing presence of under trials who are on bail.
4. LOC is opened at the instance of a competent authority authorized to do so only after examining the fact that the person concerned is either a wanted or a suspect.
5. Courts also open LOCs on various legal matters.
6. Besides, different courts also issue these communications in the form of LOCs including LOCs against that person who evade their presence in the Court of law during the course of judicial trial.
LOCs are based on the originator’s request who sent the communication to various immigrations check posts on the basis of substantive/procedural laws viz IPC, Cr.P.C., Custom Act, Income Tax Act, NDPS Act, etc. All these communications are related to accused/suspected persons wanted in some cases, there is a specific Performa in which a request must be made for opening of an LOC and this should be issued "with the approval of an officer not below the rank of Deputy Secretary to the Government of India/Joint Secretary in the State Government/Concerned Superintendent of Police/D.C.P. The "concerned authorities" are stated to include "the Ministry of Home Affairs, the Customs and Income Tax Department, Directorate of Revenue Intelligence, Central Bureau of Investigation, Interpol, Regional Passport Officers, Police Authorities in various States etc."
Apart from the Central Government and the State Government, there is no other authority on whose request an LOC can be issued.
LOCs are issued to check the arrival/departure of foreigners and Indians "whose arrival/departure has been banned by the concerned authorities". Initially it is effective for one year which can be extended for another year on the originator’s request or may be closed as requested by the originator of the LOC.