MHAA condemns ED summons to Senior Advocate Arvind Datar

The Madras High Court Advocates’ Association (MHAA) has issued a statement condemning the Enforcement Directorate (ED) for issuing a notice to Senior Advocate Arvind P Datar in connection with a legal opinion rendered by him in the course of his professional duties..In a resolution dated June 18, the Association termed the ED’s action a direct assault on the independence of the bar and a dangerous precedent that could have a chilling effect on legal professionals across the country.“It is a well-established constitutional principle that every individual has a right to legal representation and that advocates are duty-bound to provide legal advice and assistance without fear of persecution or reprisal. Targeting an advocate for giving a professional legal opinion, without any allegation of wrongdoing or unlawful conduct on his part, amounts to an attack on the independence of the Bar,” the statement read..The MHAA also emphasised Datar’s impeccable record, stating that he is a highly respected senior advocate with an unblemished record of professional integrity and service to the legal fraternity.The Association added that it stands in solidarity with Datar and reiterated its "unwavering commitment to defend the dignity and independence of the legal profession.”.The ED summons was issued to Datar in connection with its investigation into the Employee Stock Option Plan (ESOP) granted by Care Health Insurance to former Religare Enterprises chairperson Rashmi Saluja.The summons pertained to a legal opinion rendered by Datar supporting the grant of stock options to Saluja, which is now the subject of parallel scrutiny by both the ED and the Insurance Regulatory and Development Authority of India (IRDAI). The agency is examining whether the issuance of over 22.7 million ESOPs - valued at more than ₹250 crore - was in contravention of regulatory norms or part of a larger scheme involving financial impropriety.However, subsequently, the ED withdrew the summons. According to a news report, Datar is said to have told ED officials that lawyers cannot be summoned for investigations involving their clients. Citing professional privilege, he is also understood to have stated that lawyers are prohibited from disclosing legal advice given to their clients..On June 16, the Supreme Court Advocates-on-Record Association (SCAORA) issued a statement objecting to the summons, raising concerns over its broader implications for the legal profession.In the statement dated June 16, SCAORA described the ED’s action as “unwarranted” and expressed concern over what it termed a trend of “investigative overreach” affecting the legal profession and the functioning of the rule of law.The Delhi High Court Bar Association too deplored the attempt by the officials of ED to issue summons to Datar."Such attempts not only undermine the independence of the profession but also seriously impinge the constitutional rights of being defended by a lawyer of one’s choice and a fair trial," the DHCBA said in a resolution passed on June 17.On June 17, the Gujarat High Court Advocates Association held an emergency general body meeting to address the issue.The association headed by President Brijesh Trivedi unanimously condemned this action as a violation of legal profession independence and practitioners' rights. The bar body demanded immediate government intervention to frame rules protecting attorney-client privilege under the Indian Evidence Act, 1872, and the Bharatiya Sakshya Adhiniyam, 2023, while also calling for guidelines to safeguard advocates' professional conversations with clients..The summons also drew strong criticism from various Senior Advocates and other members of the bar. .[Read MHAA Resolution]