 "We are against FDI in the legal profession: Lalit Bhasin")
Lalit Bhasin, president, Society of Indian Law Firms, explains to Sudipto Dey the reasons for legal fraternity's change in stance to entry of foreign law firms into the country. Excerpts:
Why this change of stance, after opposing the entry of foreign law firms into the country for so many years?
India at that point of time was not ripe for opening up the legal services sector to the foreign firms. Our stand was we have to prepare ourselves, and for the past 20 years we have been opposing the entry of foreign law firms. These 20 years have given enough time to Indian legal profession - particularly the law firms - to strengthen themselves, to become technologically competitive and have more skilled manpower and resources. There has been growth, led by young people, working out of the metros.
Given India's commitments at WTO, was there any pressure from the government in this regard?
We - the legal professionals - don't succumb to pressures.
We fight the government, and even have tussle with the judiciary. But we see the reality of the situation, and the emerging global scenario. If the Indian legal profession has to remain relevant - not only in India but also globally - we have to face with these issues.
We decided to meet with the Ministry of Commerce and the Bar Council of India, and submitted a paper to the ministry that we are prepared to have a phased, sequential entry of foreign law firms.
The opening up of the legal services can broadly be in two phases.
First is the opening up of legal services within the country itself. We have so many restraints and constraints. We cannot have our own websites or our firm's entries in international law directories, or market our firms through brochures. Even the chairman of the Bar Council of India has said he is in favour of first opening up of the legal sector in the country. This will help us to come up to the level where we can compete effectively (with foreign law firms). On this, we are all on the same page - the government, Bar Council of India and Society of Indian Law Firms.
The second stage would be gradual opening up to foreign law firms. For that, the first requirement is to amend the Advocate's Act, 1961, underwhich only Indian citizen can practise law in India. The next step would be to allow foreign law firms to come here, but only to practice the law of their country. Then, they should not employ Indian lawyers, and subject themselves to our regulator.
So, what were your key recommendations for the first phase?
First, opening up the sector to information dissemination. Second, this period can also be used to arrive at certain reciprocity agreements with different countries. Currently, we have limited reciprocity in recognition of certain law degrees. The second phase of allowing entry of foreign firms starts, depends on when the first phase is achieved.
Are there any concerns or apprehensions when the government goes about opening up the legal services?
There are two concerns on which the entire legal services fraternity will not agree. First is allowing of multi-disciplinary practice. We are totally opposed to accountancy firms taking up legal work - something they are currently doing in a big way. This is a threat to the legal profession, and to the independence of legal profession.
Also, we are against any foreign direct investment coming into the legal profession.
How will the entry of foreign law firms affect the estimated 1.7 million lawyer community in the country?
More than 1 million lawyers in the country work in the different district courts and high courts, mostly as litigation lawyers. Foreign lawyers will not be allowed to appear in the courts. So they are not affected at all. Only the law firms in the major metros are the affected parties.
Why this change of stance, after opposing the entry of foreign law firms into the country for so many years?
India at that point of time was not ripe for opening up the legal services sector to the foreign firms. Our stand was we have to prepare ourselves, and for the past 20 years we have been opposing the entry of foreign law firms. These 20 years have given enough time to Indian legal profession - particularly the law firms - to strengthen themselves, to become technologically competitive and have more skilled manpower and resources. There has been growth, led by young people, working out of the metros.
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But the entry of foreign law firms should be in a phased, sequential manner, starting 2015. This also coincides with the efforts of the government to have a dialogue with the legal profession for opening up the services.
Given India's commitments at WTO, was there any pressure from the government in this regard?
We - the legal professionals - don't succumb to pressures.
We fight the government, and even have tussle with the judiciary. But we see the reality of the situation, and the emerging global scenario. If the Indian legal profession has to remain relevant - not only in India but also globally - we have to face with these issues.
We decided to meet with the Ministry of Commerce and the Bar Council of India, and submitted a paper to the ministry that we are prepared to have a phased, sequential entry of foreign law firms.
The opening up of the legal services can broadly be in two phases.
First is the opening up of legal services within the country itself. We have so many restraints and constraints. We cannot have our own websites or our firm's entries in international law directories, or market our firms through brochures. Even the chairman of the Bar Council of India has said he is in favour of first opening up of the legal sector in the country. This will help us to come up to the level where we can compete effectively (with foreign law firms). On this, we are all on the same page - the government, Bar Council of India and Society of Indian Law Firms.
The second stage would be gradual opening up to foreign law firms. For that, the first requirement is to amend the Advocate's Act, 1961, underwhich only Indian citizen can practise law in India. The next step would be to allow foreign law firms to come here, but only to practice the law of their country. Then, they should not employ Indian lawyers, and subject themselves to our regulator.
So, what were your key recommendations for the first phase?
First, opening up the sector to information dissemination. Second, this period can also be used to arrive at certain reciprocity agreements with different countries. Currently, we have limited reciprocity in recognition of certain law degrees. The second phase of allowing entry of foreign firms starts, depends on when the first phase is achieved.
Are there any concerns or apprehensions when the government goes about opening up the legal services?
There are two concerns on which the entire legal services fraternity will not agree. First is allowing of multi-disciplinary practice. We are totally opposed to accountancy firms taking up legal work - something they are currently doing in a big way. This is a threat to the legal profession, and to the independence of legal profession.
Also, we are against any foreign direct investment coming into the legal profession.
How will the entry of foreign law firms affect the estimated 1.7 million lawyer community in the country?
More than 1 million lawyers in the country work in the different district courts and high courts, mostly as litigation lawyers. Foreign lawyers will not be allowed to appear in the courts. So they are not affected at all. Only the law firms in the major metros are the affected parties.