New Delhi [India], August 5 (ANI): The Bar Council of India (BCI) has issued a public warning to the legal fraternity, raising alarm over unauthorized collaborations between Indian and foreign law firms. In a formal circular released Tuesday, the BCI expressed deep concern over instances of foreign legal entities entering into operational arrangements with Indian firms without prior regulatory approval—actions that may constitute the impermissible practice of law in India.
According to the Council, these tie-ups often take the form of Swiss Vereins, strategic alliances, joint branding initiatives, or exclusive referral networks. Such collaborations present themselves as unified global legal platforms, but the BCI emphasized that these models are not permissible unless formally registered under the Bar Council of India Rules for Registration and Regulation of Foreign Lawyers and Foreign Law Firms in India, 2023, as amended in 2025.
The BCI clarified that any arrangement that qualifies as an “Indian-Foreign Law Firm” under Rule 2(vi)(b) and Rule 2(vii) must be registered before offering legal services in India. This includes legal advisory, contract drafting, negotiations, and preparation of legal documentation. The Council further stated that altering nomenclature or legal structure does not exempt such arrangements from Indian regulatory scrutiny. Activities conducted under a shared brand name or coordinated service offerings, even without a formal merger, may still qualify as practicing law and fall under BCI oversight.
The Council reaffirmed the principles laid out by the Supreme Court in the 2018 case Bar Council of India v. A.K. Balaji & Ors., which held that foreign law firms and lawyers cannot operate in India—either directly or indirectly—by circumventing legal restrictions. The ruling interpreted “practice of law” in broad terms, extending beyond courtroom appearances to include any substantive legal input affecting Indian clients or matters.
In response to recent developments, the BCI has issued Show Cause Notices to entities allegedly involved in such arrangements, asking them to disclose their structural, governance, and compliance details. Failure to comply may result in proceedings under the Advocates Act, 1961, which could include penalties and charges of professional misconduct.
The Council underscored that liability will not rest solely with the implicated law firms. Individuals such as partners, executives, and officers who play a role in designing, executing, or enabling these collaborations may be held jointly and severally accountable.
While moving to crack down on unlawful practices, the BCI reiterated that it has already adopted a liberalized regulatory regime to allow foreign law firms into India. However, this is strictly limited to foreign and international law, excludes the practice of Indian law and litigation, and mandates formal registration.
(ANI)
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