Ban on foreign law firms might impact the EB-5 industry?

There’s a chaos in the immigration industry that with a recent decision from the Supreme Court of India wherein it uphold a ruling that foreign law firms cannot practice law in the country. A decision that experts say is expected to affect the investment immigration industry, including EB-5.

Under the court’s judgment, foreign lawyers and their firms cannot practice without the proper legal license to do so under India’s Advocates Act 1961. The judgment affects all foreign attorneys who visit India frequently to meet their clients, participate in immigration shows, recruit local agents or open offices.

Indian attorneys say the Supreme Court’s decision could lessen foreign immigration firms’ interest in setting up offices in India, whose citizens are known to be an important and growing client base for residency-by-investment and citizenship-by-investment programs around the world.

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It is noted by many that alot of foreign immigration law firms do not have a branch office in India. “As per the observation and conversations with my business connections that these law firms do not intend to have any branch office due to many reasons and one is giving an additional overheads in India.”, says Adv. Massey

In the wake of COVID, we can say that court’s decision has not really affected these foreign law firms to consult their clients, rather the in-person casual visit may soon disappear with the advent of more internet-based communication. Infact, the decision has not denied foreign lawyers from advising clients here to immigrate to other countries. The past year has taught us a lot which adds up to say that it is not necessary for a foreign lawyer to visit India for consultation on regular basis.

Indian citizens can pay for legal services in foreign currency under the country’s Foreign Exchange Management Act.

Adv. Massey adds up, “With rise in fraudulent activities in respect to immigration and study abroad, court should take strict action wherein they are not authorized to manage projects and provide information to clients. There should be laws to qualify such agents in India. Consultants are not lawyers or any professionals and subsequently they do not any legal or financial advice. It is the foreign lawyer or the lawyer or authorized foreign consultant who takes it forward. This is affecting the immigration industry.”

The investment immigration interest still remains on the higher side

As mentioned earlier, we need laws to govern this area. Practicing immigration law in any form is an unregulated profession and an area of law in India where there is a lack of control by a professional or government body which has led to widespread frauds, scams and wrong advice being delivered to unsuspecting individuals.

India needs a good marketing strategy to educate local investors and advisors. Investor protection is a must in view of the recent developments. The Indian market has tremendous potential and there are ample opportunities for everyone who wants to play by the regulations.