"Chilling message to legal community": SCAORA condemns ED summons to Senior Advocate Arvind Datar

The Supreme Court Advocates-on-Record Association (SCAORA) has issued a statement objecting to the recent summons issued by the Enforcement Directorate (ED) to Senior Advocate Arvind Datar, raising concerns over its broader implications for the legal profession..In the statement dated June 16, the statement signed by Honorary Secretary Nikhil Jain 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.."Mr. Datar is a respected Senior Advocate of unimpeachable integrity, who has consistently upheld the highest standards of professional conduct and legal ethics,” the statement read..SCAORA stated that the ED’s action “conflates legal advice with criminal complicity,” and called this approach “constitutionally untenable and legally unjustifiable.” It further stated that such actions could adversely affect the independence of legal counsel and the constitutional right of citizens to legal representation without intimidation.“This move sends a chilling message to the legal community at large and threatens the foundational right of every citizen to receive independent legal counsel without fear or intimidation,” the Association said, warning of a possible deterrent effect on lawyers engaging in certain types of cases..Highlighting the role of the legal profession in democratic functioning, SCAORA added,“The independence of the judiciary and the independence of the Bar are twin pillars of our constitutional democracy. The effective functioning of courts is impossible without fearless and independent advocates.”While the ED has withdrawn the summons issued to Datar, SCAORA noted that it “lodges its strong protest against the arbitrary exercise of executive power by the agencies.”.The ED summons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 pertains 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..Read Statement