Supreme Court initiates suo moto case over investigating agencies issuing summons to lawyers

The Supreme Court of India today has taken suo motu cognizance of summons being issued to advocates, in cases relating to their clients, by investigating agencies.

A bench of Justices KV Vishwanathan and N Kotiswar Singh was hearing a plea by a lawyer who was summoned by police in Gujarat in relation to a case of his client.

The assistance of the Attorney General for India R Venkataramani, Solicitor General of India Tushar Mehta, Bar Council of India (BCI) Chairman, President of Supreme Court Bar Association (SCBA) and the President of Supreme Court Advocates-on-Record Association (SCAORA) has also been sought by the Supreme Court on the issue.

While granting interim relief to the lawyer who was summoned by the police in Gujarat, the bench has ordered that the matter be placed before the Chief Justice of India (CJI) for appropriate directions.

Recently, Enforcement Directorate had issued a circular stating that no summons shall be issued to any Advocate without the prior approval of the Director, ED.

This circular has been issued by the Directorate of Enforcement after summons were issued to two Senior Advocates recently. "It has come to the notice that field formations are issuing summons to legal practitioners/Advocates/Lawyers during the course of money laundering investigation to disclose/produce communications and documents in professional capacity pertaining to their clients", the technical circular issued on 20th June stated.

In relation to the Directorate of Enforcement, Mumbai Zonal office conducting a money laundering investigation in which it has been alleged that shares of M/s Care Health Insurance Ltd (CHIL) were issued at a much lower price in the form of ESOPs on 1st May, 2022, summons were issued to Senior Advocate Pratap Venugopal.

As a strong reaction to the ED's summons issued to Venugopal over a legal opinion rendered in the ESOP matter the Supreme Court Advocates-on-Record Association (SCAORA) wrote to Chief Justice of India (CJI) Justice BR Gavai, urging urgent suo motu cognisance of the matter.

The ED has now clarified that said summons issued to Venugopal have been withdrawn and same has been communicated to him.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 Venugopal in his capacity as an Independent Director of CHIL, the same will be requested from him to be submitted by email.

SCAORA recently also strongly condemned the ED's move to summon Senior Advocate Arvind Datar in connection with a legal opinion rendered by him in his professional capacity, alleging it constitutes a “disturbing trend of investigative overreach” and an attack on the independence of the legal profession.

The bar body described the ED’s action as “unwarranted” and a “misuse of authority”, reflecting a growing tendency to undermine advocates who perform their duties fearlessly and impartially.