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Informist, Monday, Jul. 21, 2025

 

NEW DELHI – Expressing shock over the Enforcement Directorate's recent action to call advocates in a money laundering probe, the Supreme Court on Monday observed that probe agencies cannot summon lawyers to give opinions on cases. "How can lawyers be summoned like this? This is privileged communication", said a bench led by Chief Justice of India B.R. Gavai.

 

The top court was hearing a suo moto registered case on the recent incidents of the Enforcement Directorate summoning senior advocates Arvind Datar and Pratap Venugopal, while investigating money laundering cases. The agency had summoned the advocates to give legal advice to Care Health Insurance Ltd. on the employee stock ownership plan given to Rashmi Saluja, former chairperson of Religare Enterprises Ltd.

 

Solicitor General of India Tushar Mehta, appearing for Centre, agreeing with the top court's view, and said that once he came to know about the summoning of senior advocates, the highest executive took it up and a circular was issued within six hours. Last month, the Enforcement Directorate had issued a circular that directed its investigating officers not to issue summons to any advocate in money laundering investigations being carried out against their clients, adding that an exception to this rule can only be made after approval by the probe agency's director.

 

Unhappy with the Enforcement Directorate's action, Chief Justice Gavai even pulled up the probe agency for filing appeals in the Supreme Court even after reasoned orders were given by the high courts in multiple cases. Taking note of the Enforcement Directorate's summons and repeated appeals in courts, Chief Justice Gavai said the court will now have to lay down guidelines regarding actions of the probe agency. 

 

The Supreme Court Bar Association and the Supreme Court Advocates-on-Record Association had condemned the summons issued by the probe agency and called it a "disturbing trend" that struck at the very foundations of the legal profession. Various intervention applications were also filed in the case by the lawyers' association. The top court allowed all intervention applications by the lawyers' association and asked the parties to file comprehensive notes in the issue. The top court said that it will appoint an amicus curiae, who is a friend of the court, in the case to assist and listed it for hearing on Jul. 29.  End

 

Reported by Surya Tripathi

Edited by Deepshikha Bhardwaj

 

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