Bar Council’s move to open up comes with ‘reciprocity’ rider

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NEW DELHI: The Bar Council of India’s decision to allow limited opening up will come with a crucial rider or reciprocity in the home country of the lawyer or the firm, which will be tested each time an application is filed in India.
While countries such as the UK allow Indian law firms to operate, some states in the US have not opened the doors, a government source said. In each case the application vetting process is aimed at ensuring that any rule change or a foreign government’s decision to restrict or bar access of Indian entitiescan be used to deal with the situation on a “dynamic basis”. “It will be for the foreign firms or lawyers to prove that reciprocity exists,” explained an official familiar with the discussions.
For the government, opening up the legal services business to overseas players has been a long-standing suggestion, which it did notwant to push. The commerce department and the law ministry, which have worked together, believe that there is a large opportunity for Indian professionals, just like audit and accounting professionals, architects, doctors and nurses. Professions such as auditors have insisted upon reciprocity in allowing overseas professionals to operatein the country, although several firms have entered through the back door.
The decision has been crafted in a way that the interests of Indian lawyers are not compromised, while helping multinational entities to use the services of professionals in India to cater to their requirements for intellectual property rights and mergers and acquisitions related activities.
“It is a practical opening since only advisory and nonlitigation activity has been allowed at the moment,” an official said, adding that India’s booming services exports could get a further boost in coming years.



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