After Arvind Datar, ED Issues Summons To Another Senior Advocate Over Legal Advice To Client

After Arvind Datar, the Directorate of Enforcement recently issued summons to another Senior Advocate over legal advice given to M/s Care Health Insurance on the ESOP (employee stock ownership) issued to former Religare Enterprises chairperson Rashmi Saluja. 

The summons was issued to Senior Advocate Pratap Venugopal on June 18, requiring him to furnish inter-alia all records pertaining to communication between him and M/s Care Health Insurance Ltd (CHIL)/M/s Religare Enterprise Limited (REL) regarding legal opinion for grant of ESOPs  to Dr Saluja after rejection of the grant by IRDAI.

The summons also required Venugopal to tender details of payments made by M/s CHIL/M/s REL/Associated Entities against the legal services sought. He was asked to appear on June 27 before the ED Assistant Director, Mumbai.

It may be recalled that a few days back, the Economic Times reported that ED issued summons to Datar over his legal advice to Care Health Insurance on the ESOP issued to Dr Saluja. Later, the summons was reportedly withdrawn, following backlash.

The summons issued to Datar was strongly condemned by the legal community as a threat to the independence of the legal profession, including by the Supreme Court Advocates on Record Association, the Madras Bar Association, Delhi High Court Bar Association and Gujarat High Court Advocates Association. The Gujarat High Court Advocates Association also requested CJI BR Gavai to take up the issue regarding protection of professional independence of advocates and frame guidelines.