The Bar Council of India’s recent amendments to its Rules allowing foreign law firms and lawyers to enter the Indian legal market have stirred a wave of mixed reactions across legal circles—both domestically and internationally.
While some view the move as a long-awaited liberalisation of India’s legal services sector, others caution against its premature implementation without amendments to the Advocates Act, 1961, which, as per the Supreme Court’s ruling in the AK Balaji case, permits only Indian citizens to practice law in the country.
Concerns About Level Playing Field
Rohit Kochhar, Chairman and Managing Partner of Kochhar & Co., commended the enthusiasm behind the BCI’s decision but questioned the legality of its implementation under current laws. He highlighted Rule 36 of the BCI Rules, which bars Indian lawyers from advertising or soliciting work—restrictions not imposed on foreign firms. Kochhar stressed the need for appropriate safeguards to ensure fair competition between domestic and international legal players.
Need for Legal Clarity and Reciprocity
Fidelegal Advocates & Solicitors welcomed the move as a growth driver for India’s legal market, but Managing Partner Sumit Gehlot warned that lack of amendments to the Advocates Act could lead to confusion and legal ambiguity. He also advocated for complete reciprocity, urging that foreign firms be limited to non-litigious work involving foreign or international law and that Indian firms be granted equal opportunity to expand abroad.
Call for Systematic Reform
Dr. Lalit Bhasin, President of the Society of Indian Law Firms (SILF), echoed the need for statutory amendments. He pointed out that the Supreme Court’s stance in the Balaji case remains binding, and bypassing it without legislative changes could result in “confusion and embarrassment.” Dr. Bhasin also stressed the importance of a robust legal framework, including the Mediation Law, to make India a global hub for dispute resolution.
Cautious Optimism in the Legal Community
JSA Advocates & Solicitors welcomed the clarity the BCI’s notification brings to a long-debated issue. Vivek K. Chandy, Joint Managing Partner, expressed hope that this marks the beginning of broader reforms in the legal services industry. His colleague Amar Gupta called on the BCI to also address domestic law firms’ ability to expand globally, ensuring the reforms benefit all stakeholders equally.
What Lies Ahead?
Despite the BCI’s formal notification, stakeholders across the board agree on one point: amendments to the Advocates Act, 1961, are essential for the changes to be constitutionally sound and practically effective. Until then, the legal fraternity remains watchful, hopeful, and cautious.