It now seems that the Indian government is likely to maintain a status quo and avoid giving clarity around whether foreign law firms can operate from India or not. This latest development comes about two months after the Ministry of Commerce and Industry amended a rule on 3rd January allowing foreign law firms to set up offices and advise clients from Indian SEZs.

Not allowed

Before the rule change, India did not permit multinational law firms to operate in the country. Indian law firms were also not allowed to operate from any of the SEZs. The January amendment was made by the Commerce Ministry whilst the decision whether to allow a foreign law firm in India is a purview of  the Ministry of Law & Justice, say industry experts.

Negotiations

Representatives of Society of Indian Law Firms (SILF) - a body comprising the country's top 100 law firms and the apex representative organisation for corporate commercial and litigation law - had recently met the senior government officials in the Ministry of Law and Justice.  No decision has been made -  not good news for law firms seeking clarity and it seems they may well giving the country a wide berth - at least for now.