ED Clarifies Policy on Summoning Advocates After Withdrawing Notice to Senior Lawyer Pratap Venugopal
In a move that brings relief to the legal fraternity, the Directorate of Enforcement (ED) has clarified that advocates will not be summoned during investigations except under exceptional circumstances, and even then, only with prior approval from the Director of the agency. This clarification comes in the wake of a controversy surrounding a summons issued to Senior Advocate Pratap Venugopal, which the ED has since withdrawn.
The announcement was made through a press release from the ED’s Mumbai Zonal Office on June 20, 2025, and has been welcomed by members of the bar who have increasingly voiced concerns over the preservation of legal privilege and professional independence in ongoing investigations.
The withdrawn summons had been issued as part of a money-laundering probe involving M/s Care Health Insurance Ltd (CHIL). The investigation focuses on alleged irregularities in the issuance of Employee Stock Option Plans (ESOPs) by CHIL. According to the ED, CHIL had allotted ESOPs on May 1, 2022, at a significantly undervalued price, even though the Insurance Regulatory and Development Authority of India (IRDAI) had rejected the proposal.
In fact, on July 23, 2024, the IRDAI had directed the company to cancel any unallotted ESOPs and also imposed a ?1 crore penalty for violating regulatory norms. The ED is currently investigating how CHIL proceeded with the allotment in spite of this regulatory directive and internal deliberations by the company's board.
Advocate Pratap Venugopal, a Senior Advocate of the Supreme Court and an Independent Director on CHIL’s board, was caught in the crosshairs of this probe. Recognizing his standing and role as a non-executive board member, the ED has now formally withdrawn the summons and clarified that any required information from him will be sought via email instead.
In a significant policy move, the ED has also issued a circular to all field offices, reiterating that no advocate shall be summoned in violation of Section 132 of the Bhartiya Sakshya Adhiniyam, 2023. If such action is considered absolutely necessary under the exceptions outlined in the law, it must receive prior clearance from the Director of the agency.
The clarification comes at a time when concerns have been growing in the legal community regarding investigative agencies encroaching upon the privileged space between advocates and their clients. By drawing this line, the ED has not only acknowledged the special status of legal professionals but has also attempted to reassure the bar that due process and professional respect will be maintained.
