The Directorate of Enforcement (ED) has clarified that no summons shall be issued to any advocate except under exceptional circumstances, and even then, only with the prior approval of the Director, ED. This statement was issued through a press release by the ED’s Mumbai Zonal Office on 20 June 2025, following the withdrawal of a summons issued to Senior Advocate Pratap Venugopal.
The summons had been issued as part of a money-laundering investigation related to alleged irregularities in the issuance of Employee Stock Option Plans (ESOPs) by M/s Care Health Insurance Ltd (CHIL). According to the ED, shares in the form of ESOPs were issued on 1 May 2022 at a significantly lower price, despite being rejected by the Insurance Regulatory and Development Authority of India (IRDAI). The ED is investigating how CHIL proceeded with the ESOP allotments despite IRDAI’s directions and subsequent discussions by the company’s board.
The IRDAI, on 23 July 2024, had directed CHIL to revoke or cancel any ESOPs yet to be allotted and imposed a penalty of ₹1 crore for non-compliance with its regulatory directions.
Acknowledging the status of Pratap Venugopal as a Senior Advocate of the Supreme Court and an Independent Director of CHIL, the ED stated that the summons has been withdrawn and the communication has been formally conveyed to him. The agency further clarified that if any documents are required from him in his capacity as an Independent Director, they will be requested via email.
In addition, the ED has issued a circular to all its field offices instructing that no summons be issued to any advocate in violation of Section 132 of the Bhartiya Sakshya Adhiniyam, 2023. If a summons is deemed necessary under exceptions mentioned in the proviso to Section 132 of the BSA, 2023, it must be approved in advance by the Director of the ED.
The clarification comes amid growing concerns in the legal community about the preservation of legal privilege and the independence of advocates in the face of investigative actions.
