The Society of Indian Law Firms (SILF) has unanimously resolved to send a representation to the Ministry of Commerce and the Ministry of Law and Justice to withdraw the amendment made in the Special Economic Zone Rules, allowing legal services in the Special Economic Zone.

The Ministry of Commerce and Industry had on January 3 of this year, issued a notification amending the Special Economic Zones Rules, 2006, which was first reported by LiveLaw. Rule 76 of the principal Rules has been amended to include ‘legal services and accounting’ within the ambit of the term (professional) ‘services’.

Prior to the amendment, law firms were not allowed to operate in SEZs. The omission of the words ‘legal services and accounting’ from the principal Rules implies both foreign and domestic law firms can now practice in SEZs, although the notification does not clearly mention foreign law firms.

Economic Times too reported on this notification stating, “Foreign law and accountancy firms now have a chance to operate in India on their own. On January 3, the ministry of commerce and industry amended a rule allowing such foreign firms to set up offices and advise clients from SEZs.”

Reacting to this development, SILF President Lalit Bhasin called this a “backdoor entry” to foreign law firms, without having consulted any stakeholders from the legal industry. Bhasin had written to all the members of the SILF seeking responses on several questions that he raised with respect to the validity of the said amendment.

In this regard, the SILF meeting was held yesterday and the SILF members have unanimously resolved to oppose the notification. Confirming this, Bhasin told Bar & Bench that SILF has also formed a committee which will draft the representation that will be sent to the two Ministries.

Read the SEZ notification: