Foreign companies may enter legal services

Last updated: 28 September 2007 Follow on Google News

Opening up of legal services for foreign players could be on the cards. The government has begun consultations on the issue with the Indian stake-holders, Law Minister HR Bharadwaj said on Tuesday. He said efforts would be made to build a consensus and assured the domestic law firms that the government would put in place adequate safeguards to protect their interests. The government has asked stake-holders to come with their views on the kind of safeguards they want and a decision would be taken only after all of them agree. “We are holding consultations on the issue. Last week, I invited leading legal firms of the country to the negotiating table. We had convened a meeting with over 100 leading law firms. By the end of October, we will meet again,” Mr Bhardwaj said. He said some of the firms had expressed their reservations against opening up of legal services. Mr Bhardwaj said some firms had concerns that they would not be able to meet competition from foreign firms. Opposition is also on the ground that many advanced countries do not recognise Indian law degrees. Claiming that opening up of legal services would bring in investment by foreign firms and provide better job opportunities to Indian lawyers, he said the legal community should not shy away from competition. The Law Minister, however, clarified that foreign lawyers would not be allowed to practise Indian law in the country. “Only Indian lawyers could practise Indian law here,” he said. The country, he said, is paying foreign law firms heavily to avail of legal services. “In Enron case, the government paid Rs 100 crore (to overseas law firms),” Mr Bhardwaj said, referring to the arbitration proceedings initiated against the Indian government by foreign lenders to the Dabhol power project. Mr Bhardwaj said his ministry was in talks with the International Court of Justice, Hague, and London Court of International Arbitration to set up offices in India. To a query whether foreign law firms would be permitted through a Limited Liability Partnership route, Mr Bhardwaj said these issues were being negotiated. “We are also discussing whether a regulatory mechanism should be set up,” he added

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Finance news reporter covering taxation, GST, income tax, business compliance, and economy updates. I simplify complex financial topics into easy-to-understand articles for professionals, taxpayers, and business owners on leading finance and tax platforms.

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