Reserve Bank of India (RBI) advised the Banks that no fresh permissions/ renewal of permission shall be granted by the RBI to any foreign law firm for opening of Liaison Office in India, till the policy is reviewed based on the final disposal of the matter by the Hon’ble Supreme Court.
The Hon’ble Supreme Court has while disposing of the case, held that advocates enrolled under the Advocates Act, 1961 alone are entitled to practice law in India and that foreign law firms/ companies or foreign lawyers cannot practice profession of law in India. As such, foreign law firms/ companies or foreign lawyers or any other person resident outside India, are not permitted to establish any branch office, project office, liaison office or other place of business in India for the purpose of practicing legal profession. Accordingly, AD Category–I banks are directed not to grant any approval to any branch office, project office, liaison office or other place of business in India under FEMA for the purpose of practicing legal profession in India.
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