ED Summons Lawyer Over Role as Independent Director, Sparks Controversy

NEW DELHI: The Enforcement Directorate (ED) has issued a summons to a senior lawyer for his involvement as an independent director of a company currently under investigation, prompting criticism from legal associations. The Supreme Court Advocates on Record Association (SCAORA) condemned the ED’s action, arguing that targeting a lawyer for providing professional legal advice threatens the independence of the legal profession.

The summons relates to the lawyer’s legal opinion on the allocation of an employee stock option plan (ESOP) to Rashmi Saluja, former chairperson of Religare Enterprises, by Care Health Insurance, a company under ED scrutiny. The lawyer challenged the summons, asserting that a legal professional’s opinion should not be subject to investigation. Following his objection, the ED withdrew the summons.

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Despite the withdrawal, SCAORA, led by president Vipin Nair and general secretary Nikhil Jain, issued a statement denouncing the ED’s move as an overreach. They argued that summoning a senior advocate for fulfilling professional duties undermines the rule of law and could destabilize the legal system. “Such coercive actions against advocates for providing legal advice risk paralyzing the justice delivery mechanism and eroding public trust,” the statement said.

The controversy follows a similar incident where the ED issued a summons to another senior advocate, Pratap Venugopal, on June 18, for advice given to Care Health Insurance regarding the same ESOP issue. SCAORA has since appealed to the Chief Justice of India, urging suo motu action to address the ED’s actions.