Supreme Court Advocates Association takes issue with ED summons to counsel Arvind Datar over Care Health Insurance advice
The
Supreme Court
Advocates-on-Record Association (SCAORA) has condemned the
Enforcement Directorate
's summons to senior counsel
Arvind Datar
, who advised
Care Health Insurance
.
In a statement on Monday, the association said: "When investigative agencies resort to coercive measures against advocates merely for giving legal opinions, they do not just target individuals, they strike at the institutional structure that ensures justice." Last week, ET reported that Datar was called by the ED over his legal opinion concerning Esops (employee stock options) allocated to former Care Health Insurance chairperson
Rashmi Saluja
. Sources told ET that ED has communicated to Datar that his presence was not required as of now in the case and he will communicated later if required.
"Section 50 of the PMLA (Prevention of Money Laundering Act) empowers the agency to summon a person in a case. It doesn't bar an advocate. While the client-advocate fiduciary relationship is something that probe agencies don't get into but if there is something that they require a clarification on or if the statement could help them understand something, they could be asked to join the probe. The summoning here is in the capacity of a witness," explained a senior advocate.
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Attempts to reach Datar for comment went unanswered by press time. "This action by the ED is not only unwarranted but reflects a disturbing trend of investigative overreach that threatens the independence of the legal profession and undermines the very foundation of the rule of law," the association said.
SCAORA emphasised that summoning a senior lawyer for discharging his professional responsibility is a misuse of power and an affront to the sanctity of the advocate's role. The Supreme Court has repeatedly stated that advocates are not responsible for their clients' actions when they simply give legal advice.
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The Print
an hour ago
- The Print
ED takes lesson from Datar & Venugopal episodes, director's nod now must to summon advocates
The move followed strong condemnation by several associations of lawyers of the ED summons issued to two senior advocates in connection with a money-laundering probe. New Delhi: The Enforcement Directorate (ED) Friday issued a circular to its officers instructing them not to summon any advocate as part of the investigation, as it could amount to a violation of the Bharatiya Sakshya Adhiniyam (BSA). The ED circular, a copy of which has been seen by ThePrint, further said that, in exceptional circumstances, when summons have to be issued, it can only be done after the approval of the agency director. From Section 132, 'it is amply clear that a legal practitioner cannot be compelled to disclose any communication made to him in the course and for the purpose of his professional service as such legal practitioner, by or on behalf of his client unless with his client's express consent. However, proviso to Section 132 of the BSA, 2023 has carved out certain exceptions,' said the circular issued by ED's legal wing to field officers. 'In view of the above, it is directed that no summons shall be issued to any advocate in violation of Section 132. Further, if any summon needs to be issued under the exceptions carved out in proviso to Section 132 of the BSA, the same shall be issued with the prior approval of the Director, ED,' it added. The development comes at a time when the ED has drawn criticism from the legal community over summoning senior advocates Arvind Datar and Pratap Venugopal in its probe into dealings of Care Health Insurance (CHIL) and its parent company, Religare Enterprises (REL). Both summonses have been withdrawn. In a letter dated 16 June, the Supreme Court Advocates-on-Record Association expressed 'strong disapproval' of the summons to Datar and said it reflected 'a disturbing trend of investigative overreach'. ThePrint had earlier reported that the ED has been probing money laundering allegations against these firms, including the transfer of shares worth crores to former CHIL non-executive chairperson and REL executive chairperson Rashmi Saluja despite the request being rejected by the Insurance Regulatory and Development Authority of India (IRDAI). The former board of CHIL cited an opinion that it had sought from Datar to grant shares to Saluja. According to the ED, Datar said IRDAI's approval was not needed since the shares were being granted in her capacity as an REL employee, and not CHIL. Separately, Venugopal was summoned in his capacity as the former independent director of CHIL to understand the circumstances behind the share transfer, the ED spokesperson said. In a statement Friday, the ED spokesperson said, 'In view of the fact that Shri Pratap Venugopal is a Senior Advocate in the Hon'ble Supreme Court, the summons issued to him has been withdrawn and same has been communicated to him. 'In the said communication, it has also been stated that if any documents will be required from him in his capacity as an Independent Director of CHIL, the same will be requested from him to be submitted by email.' (Edited by Sanya Mathur) Also Read: ED's now-withdrawn summons to Arvind Datar: The case, controversy & SC advocates body letter
Hindustan Times
2 hours ago
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PMLA court grants bail to aide of Dawood's brother
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New Indian Express
2 hours ago
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NEW DELHI: The Enforcement Directorate (ED) on Friday withdrew its summons issued against a senior advocate for reportedly giving legal advice in a case, after the Supreme Court Advocates on Record Association (SCAORA) wrote to the Chief Justice of India (CJI) for taking note of the coercive action. The agency wrote to senior advocate Pratap Venugopal, intimating him that the summons have been withdrawn with 'immediate effect'. SCAORA president Vipin Nair had written to CJI B R Gavai on the 'deeply disquieting development' having 'serious ramifications for the independence of the legal profession and the foundational principle of lawyer-client confidentiality'. 'It has come to our notice that senior advocate Pratap Venugopal, has received on June 19, a summons dated June 18, by ED under Section 50 of the Prevention of Money Laundering Act (PMLA) in its investigation into the Employee Stock Option Plan (ESOP) granted by M/s Care Health Insurance Ltd for a purported legal opinion rendered by senior advocate Arvind Datar, wherein Pratap Venugopal, was the advocate-on-record, supporting the grant of stock options to former Religare enterprises chairperson Rashmi Saluja,' the letter said. Venugopal told TNIE the probe agency's action was completely illegal, unconstitutional, unwarranted. 'It is sad and unfortunate. The action of issuing summons to advocates is an alarming practice besides being wholly contrary to the provisions of Sec 132 of the Bharatiya Sakshya Adhiniyam (BSA) 2023,' he said.
