New Delhi: The Union Law Ministry on Tuesday set at rest all controversy by making it clear that foreign law firms would not be allowed entry into Indian courts.

While ruling out the entry of foreign law firms, the Government said, "Britain and Australia had approached the Bar Council of India seeking permission to set up their law firms in the country. But the Bar Council of India made it clear to them that it is opposed to the entry of foreign lawyers and foreign law firms in the country. An American law firm had also approached the BCI to open its branch office here to render legal services. But its request was turned down."

Ever since there was a demand for allowing free entry of foreign law firms in tune with emerging globalisation, the Supreme Court Bar Association (SCBA), the Bar Association of India, the BCI and the All India Bar Association (AIBA) had urged the Centre not to succumb to international pressures. It was pointed out that even if there were reciprocal arrangements, there were practical difficulties in Indian law firms competing with foreign firms. There was an apprehension that large and prosperous foreign law firms would control Indian law firms. Throwing open the legal services to foreign lawyers would be disastrous to the legal profession in India, the Government was told.

Sources said that in the light of strong resentment among lawyers, it was decided not to allow the entry of foreign law firms in the country.

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