Latest news with #PratapVenugopal
The Print
5 hours ago
- Business
- The Print
ED takes lesson from Datar & Venugopal episodes, director's nod now must to summon advocates
The move followed strong condemnation by several associations of lawyers of the ED summons issued to two senior advocates in connection with a money-laundering probe. New Delhi: The Enforcement Directorate (ED) Friday issued a circular to its officers instructing them not to summon any advocate as part of the investigation, as it could amount to a violation of the Bharatiya Sakshya Adhiniyam (BSA). The ED circular, a copy of which has been seen by ThePrint, further said that, in exceptional circumstances, when summons have to be issued, it can only be done after the approval of the agency director. From Section 132, 'it is amply clear that a legal practitioner cannot be compelled to disclose any communication made to him in the course and for the purpose of his professional service as such legal practitioner, by or on behalf of his client unless with his client's express consent. However, proviso to Section 132 of the BSA, 2023 has carved out certain exceptions,' said the circular issued by ED's legal wing to field officers. 'In view of the above, it is directed that no summons shall be issued to any advocate in violation of Section 132. Further, if any summon needs to be issued under the exceptions carved out in proviso to Section 132 of the BSA, the same shall be issued with the prior approval of the Director, ED,' it added. The development comes at a time when the ED has drawn criticism from the legal community over summoning senior advocates Arvind Datar and Pratap Venugopal in its probe into dealings of Care Health Insurance (CHIL) and its parent company, Religare Enterprises (REL). Both summonses have been withdrawn. In a letter dated 16 June, the Supreme Court Advocates-on-Record Association expressed 'strong disapproval' of the summons to Datar and said it reflected 'a disturbing trend of investigative overreach'. ThePrint had earlier reported that the ED has been probing money laundering allegations against these firms, including the transfer of shares worth crores to former CHIL non-executive chairperson and REL executive chairperson Rashmi Saluja despite the request being rejected by the Insurance Regulatory and Development Authority of India (IRDAI). The former board of CHIL cited an opinion that it had sought from Datar to grant shares to Saluja. According to the ED, Datar said IRDAI's approval was not needed since the shares were being granted in her capacity as an REL employee, and not CHIL. Separately, Venugopal was summoned in his capacity as the former independent director of CHIL to understand the circumstances behind the share transfer, the ED spokesperson said. In a statement Friday, the ED spokesperson said, 'In view of the fact that Shri Pratap Venugopal is a Senior Advocate in the Hon'ble Supreme Court, the summons issued to him has been withdrawn and same has been communicated to him. 'In the said communication, it has also been stated that if any documents will be required from him in his capacity as an Independent Director of CHIL, the same will be requested from him to be submitted by email.' (Edited by Sanya Mathur) Also Read: ED's now-withdrawn summons to Arvind Datar: The case, controversy & SC advocates body letter
New Indian Express
6 hours ago
- Politics
- New Indian Express
ED withdraws summons to senior lawyer
NEW DELHI: The Enforcement Directorate (ED) on Friday withdrew its summons issued against a senior advocate for reportedly giving legal advice in a case, after the Supreme Court Advocates on Record Association (SCAORA) wrote to the Chief Justice of India (CJI) for taking note of the coercive action. The agency wrote to senior advocate Pratap Venugopal, intimating him that the summons have been withdrawn with 'immediate effect'. SCAORA president Vipin Nair had written to CJI B R Gavai on the 'deeply disquieting development' having 'serious ramifications for the independence of the legal profession and the foundational principle of lawyer-client confidentiality'. 'It has come to our notice that senior advocate Pratap Venugopal, has received on June 19, a summons dated June 18, by ED under Section 50 of the Prevention of Money Laundering Act (PMLA) in its investigation into the Employee Stock Option Plan (ESOP) granted by M/s Care Health Insurance Ltd for a purported legal opinion rendered by senior advocate Arvind Datar, wherein Pratap Venugopal, was the advocate-on-record, supporting the grant of stock options to former Religare enterprises chairperson Rashmi Saluja,' the letter said. Venugopal told TNIE the probe agency's action was completely illegal, unconstitutional, unwarranted. 'It is sad and unfortunate. The action of issuing summons to advocates is an alarming practice besides being wholly contrary to the provisions of Sec 132 of the Bharatiya Sakshya Adhiniyam (BSA) 2023,' he said.
Time of India
7 hours ago
- Business
- Time of India
Summons sent to lawyer for his role as co's ind dir: ED
Representative Image NEW DELHI: Faced with criticism, Enforcement Directorate Friday said it issued summons to senior advocate Pratap Venugopal as part of its ongoing investigation against Care Health Insurance Ltd (CHIL) in which Venugopal was an independent director. ED's Mumbai zonal office is conducting a money laundering investigation in which it has been alleged that shares of CHIL were issued at a much lower price in the form of ESOPs on May 1, 2022, in spite of the rejection of the same by Insurance Regulatory and Development Authority of India (IRDAI). "As part of the investigation, summons was issued to Pratap Venugopal, an independent director of CHIL, to understand the circumstances under which the company has issued ESOPs despite its rejection by IRDAI and subsequent discussions in the board of CHIL in this regard," the agency said about the summons which it withdrew after protests by lawyers' bodies. In a statement, the agency emphasised that IRDAI on July 23, 2024, had directed CHIL to revoke or cancel any ESOPs that were yet to be allotted and had also imposed a penalty of Rs 1 crore on CHIL for non-compliance with regulatory directions. "In view of the fact that Pratap Venugopal is a senior advocate in Supreme Court, the summons issued to him has been withdrawn and the same has been communicated to him," the agency said. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like American Investor Warren Buffett Recommends: 5 Books For Turning Your Life Around Blinkist: Warren Buffett's Reading List Undo In the said communication, it was also stated that if any documents were required from him in his capacity as an independent director of CHIL, the same would be requested to be submitted by email, the agency added. Further, ED has asked its units not to issue summons to lawyers, saying summoning them would be violative of Section 132 of Bhartiya Sakshya Adhiniyam, 2023. "If any summons needs to be issued under the exceptions carved out in proviso to Section 132 of Bhartiya Sakshya Adhiniyam, 2023, the same shall be issued only with the prior approval of the director, ED," the agency said.
Deccan Herald
13 hours ago
- Business
- Deccan Herald
SC lawyers controversy: ED directs investigators to not summon advocates in case against clients
The statement from the federal probe agency came in the wake of the lawyer-client privilege linked controversy that erupted after the ED issued back-to-back summons to senior Supreme Court lawyers Arvind Datar and Pratap Venugopal for giving legal advice to Care Health Insurance Limited (CHIL) on the employee stock ownership plan (ESOP) given to Rashmi Saluja, former chairperson of Religare Enterprises.
India Today
16 hours ago
- Business
- India Today
ED bars summons to advocates, exceptions need director's approval under law
The Enforcement Directorate (ED) on Friday issued a circular instructing its field formations not to issue summons to any advocate in violation of Section 132 of the Bhartiya Sakshya Adhiniyam, 2023. This section states that no advocate, at any point of time, should disclose any communication made to him without the client's circular mandates that any summons under the exceptions to this provision require prior approval from the Director of the Enforcement comes amid the probe agency's investigation into a money laundering case involving Care Health Insurance Ltd (CHIL) concerning the issuance of Employee Stock Options (ESOPs) at significantly undervalued prices. The case centres around the Employee Stock Ownership Plans (ESOPs) issued on May 1, 2022, which were reportedly priced much lower than market value. This issuance allegedly took place despite a formal rejection of the ESOP proposal by the Insurance Regulatory and Development Authority of India (IRDAI).As part of the ongoing probe, the ED summoned Pratap Venugopal, an independent director of CHIL, to ascertain the circumstances surrounding the issuance of the ESOPs and the board's discussions following IRDAI's rejection. However, given that Venugopal is a senior advocate practicing in the Supreme Court, the summons issued to him has now been ED said that any documents required from him in his capacity as an independent director will be requested via July 23 last year, the IRDAI directed CHIL to revoke or cancel any ESOPs that remain unallotted. In addition, the regulator imposed a penalty of Rs 1 crore on CHIL for non-compliance with its Watch
