British legal eagles may find perch here
Bar Council Now Amenable To Opening Up Sector
Rajat Guha & Paramita Chatterjee NEW DELHI

THE law ministry may permit UK-based law firms to practice in India, provided the British government allows Indian legal eagles to get work visas there. The move would come as a relief to UK firms like Linklaters, Allen & Overy and Clifford Chance, which have informal tie-ups with Indian law firms.
   

The development would be significant as the Bar Council of India (BCI), which was averse to opening up the legal sector, has backed the proposal. Sources said BCI has indicated that it may consider the matter on a countryspecific basis, provided there is a quid pro quo arrangement. Both the UK and Indian governments are keen to pave the way for a two-way movement of legal eagles. Once an agreement is finalised with the UK, BCI may be urged to open the gates to other countries too on a reciprocal basis.
   

Last year, law minister HR Bharadwaj had indicated easing of norms for the entry of foreign law majors. The proposal was shelved due to protests from lawyers in general and BCI in particular. BCI is now agreeable to opening up the sector, provided all stipulations pertaining to reciprocity are fulfilled.
   

“We have told the law ministry that we would consider applications of UK-based law firms only if they allow our lawyers to practice there. A stricter set of reciprocity rules would be laid out before we set out to start operations,” BCI member Jagdev told ET.

   Entry of foreign law firms in India is prohibited. Global firms, which already have a presence here, have established informal tie-ups in the form of client referral arrangements with Indian law majors. Some partnerships also involve joint training, consultation and marketing.

   Many UK law firms have expressed willingness to set up base in India. “The UK has been witnessing negative growth for quite sometime and that’s why law firms there are eyeing India,” said Society of Indian Law Firms president Lalit Bhasin. However, he added that it may take some time for BCI to open the gates to foreign majors as this requires legislative changes. “No preferential treatment can be given to any particular jurisdiction,” he added.

   Allen & Overy and Linklaters are some of the UK-based firms that have informal tie-ups with Indian law firms. They have client referral arrangements with Trilegal and Talwar, Thakore & Associates, respectively. Others like Clifford Chance have liaison offices here.