Supreme Court’s interim bar on foreign lawyers’ entry in India

The Apex Court virtually stayed a Madras High Court order partially opening doors for business by foreign law firms and lawyers by allowing them to visit India for temporary periods to provide legal advice to their clients in India.

A bench comprising Justice R.M. Lodha and Justice Anil R. Dave further clarified that the Reserve Bank of India (RBI) could not permit foreign law firms to open liaison offices in India under the Foreign Exchange Regulation Act (FERA) in view of the high court decision.

The bench passed the interim order while issuing notice on an appeal by the Bar Council of India (BCI) challenging the February 21 Madras High Court order holding that there was no bar on foreign lawyers visiting India for practicing on non-litigation matters.

The Supreme Court ordered a stay on proceedings in a case against former railway minister C.K. Jaffer Sharief, who has been charged with causing a loss to the public exchequer by taking four people along with him on a foreign trip.

A bench presided over by Justice P. Sathasivam ordered an interim stay on the proceedings while issuing notice on Sharief’s appeal challenging a Delhi High Court order refusing to drop proceedings in the case registered under the prevention of corruption law.