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Introducing the ALB India Brief

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The third issue of our newly launched ALB India Brief premium email features:

Written and compiled by Elizabeth Beattie and Ranajit Dam. Please send tips and feedback to ALBEditor@tr.com

India Brief Vol. 3 
11 February 2021

The Big Story: Farmer Protests feat. Rihanna – ‘Twitter in the crosshairs’


70th Cannes Film Festival - Screening of the film "Okja" in competition - Red Carpet Arrivals- Cannes, France. 19/05/2017. Singer Rihanna poses. REUTERS/Regis Duvignau

(By Elizabeth Beattie) Those who’ve been following the news even casually will be aware that for some months now, India has been experiencing protests from farmers, demanding the withdrawal of new agriculture laws that they say benefit private buyers at the expense of growers. As you read this, tens of thousands of farmers are still camped outside the capital of New Delhi, and there does not appear any end to the impasse.

These protests against the government have gained the attention of a variety of public figures internationally, from teen climate activist Greta Thunberg, to bestselling pop artist Rihanna and even the adult film actress Mia Khalifa, who all used Twitter to voice their support. And while most of these celebrities are somewhat out of the reach of Indian authorities – although Delhi Police did file a report against the creators of a “toolkit” on the protest shared by Thunberg – it is Twitter itself that is facing the heat for providing a platform for hundreds of accounts targeted by the government. 

According to Reuters, New Delhi contacted Twitter last week, asking for the U.S. tech giant to ditch specific accounts, saying they were backed by Pakistan or operated by sympathizers of Sikh separatists. India’s security agencies suggested some accounts were being operated from outside the country. After initially blocking accounts, Twitter refused to comply with a government directive to block more than 250 accounts and posts, Reuters reports, and is currently seeking talks with India’s technology minister over the potential removal of 1,178 accounts.

The developments now raise questions over the legality of the government’s demands, and, more broadly speaking, the limits of free speech, as well as the liability of a social media platform for accounts that it hosts. Twitter is accused of falling foul of the 69A of the Information Technology Act, which allows the central government to block access to information generated, transmitted, received, stored or hosted in any computer resource if it believes the content impacts the security, defence, sovereignty and integrity of India.

Avimukt Dar, a partner at IndusLaw, says the country is in an interesting position at the moment. “India’s Constitution and Constitutional courts - unlike say those of the United States  -have eschewed absolutism in freedom of speech and balanced this freedom with the need to ‘keep it together,’” he notes. “The state’s monopoly on power is not as strong here as it is in advanced economies, nor do we enjoy the margin of safety from external and internal aggression that they do. Therefore, the Indian state has always deemed it necessary to have ‘reasonable restrictions’ on fundamental rights inter alia in the interest of sovereignty, integrity and security.” 

The Twitter tensions have led to many revisiting the 2015 Shreya Singhal case, in which a young law student was responsible for scrapping Section 66A of the Information Technology Act that allowed police to arrest people for social media comments. At the time, the court drew a distinction between “advocacy” and “incitement,” when it comes to sedition charges.

Dar says the government is “generally cognisant of the need to maintain a certain degree of platform immunity and as such platforms are only liable for non-compliance of lawful orders.”

“From media reports, it appears that the government gave a specific list of usernames that were using specific hashtags that indicated that the government of India was planning a ‘farmer genocide’ or were spreading misinformation that could trigger violence by precipitating the ongoing ‘non-violent’ farmer protests,” Dar says, noting this may allow the government to defend itself “on grounds of reasonableness.”

But the “increasing frequency with which Section 69A is being used (including takedowns of accounts as well as specific posts) does not augur well and may invite judicial scrutiny on the basis of a ‘slippery slope’ being created,” Dar adds.

What’s happening: Budget applause from overseas


India's Finance Minister Nirmala Sitharaman holds budget papers during a photo opportunity as she leaves her office to present the federal budget in the parliament in New Delhi, India, February 1, 2020. REUTERS/Anushree Fadnavis

Last week we explored India’s “get-well-soon” budget. This week we’re asking heads of India practices based internationally about how they would rate the budget.

9/10“With the Indian economy suffering from the effects of the COVID-19 pandemic, the focus on growth and increased spending on healthcare and infrastructure are to be applauded. From my perspective, the plan to privatise more government-owned companies will see a pickup in work for capital markets lawyers. The only question mark is, given the increased budget deficit, will the ratings agencies downgrade India’s sovereign debt to junk status, as it is only one notch away from that currently.” - Jamie Benson, partner and head of the U.S. securities law practice, India practice and Myanmar capital markets practice, Duane Morris & Selvam, Singapore.

8/10 “The Indian Budget 2021 is a budget designed to build a nation. With Atmanirbhar Bharat (self-sufficient India) as its goal, the budget provides a ‘booster shot’ to healthcare, infrastructure and agriculture amongst others. The ecosystem that this seeks to establish will naturally lead to greater employment and skills development opportunities and a resulting virtuous ‘circle of growth.’ This, combined with a continued commitment to optimise government focus and resources as a result of the privatisation programme and a clear commitment to support digital transformation across the board, provides what India needs to bring it onwards and upwards through the COVID crisis and beyond.” - Babita Ambekar, partner and head of the India Desk, CMS Holborn Asia, Singapore.

‘High marks’ “India’s much awaited annual budget will certainly be a turning point for the country’s long-term growth prospects and the budget has laid the foundations for strong economic growth, particularly in the fields of finance and infrastructure. Despite the damaging impacts of COVID-19 on the Indian economy, the budget did not introduce high taxes on businesses and instead the Indian government chose to focus its attention on increased capital expenditure, which should accelerate India’s growth. India has taken a big step forward in privatising historic state-owned companies, which will significantly improve productivity and efficiency in the markets. I welcome higher government spending, bank privatisation and the liberalisation of the economy, as it will encourage more foreign investment into India by making it easier to do business in the country. This budget has been very positive indeed.” - Sherina Petit, partner and head of the India Practice, Norton Rose Fulbright, London.

Further afield: Success in a bad year

As the dust of 2020 settles and lawyers take stock, it turns out the pandemic year wasn’t that bad for firms, all told. In the UK, a survey by accountancy network MHA carried out in December found that 91 percent of the country’s law firms had made a profit since March, reports the Law Gazette, and almost half said there was either “no” or a “minor” impact on their fee income. The story is similar across the pond in the U.S., where many large firms are set to report that 2020 was their best financial year in a decade, says Bloomberg, which offers tips on how law firms should talk about their success in a year that COVID-19 has broadly caused so much pain and suffering.

But doing well is not always the same as doing good. The offshore law firm Ogier has an interesting article about how ESG is becoming an important part of the legal industry, either through the voluntary efforts of firms or via external pressures: “Law firms are not immune from scrutiny when it comes to their roles in negative ESG outcomes, including climate change,” the piece says.

Back to surveys, and a recent one from Thomson Reuters finds that even before the pandemic hit, the balance of spending had been shifting in favour of in-house legal teams. The report finds that law firms should focus on winning higher-value cross-border work and develop ways of serving clients enabled with technology to offer the best chance of improving revenues.

And finally, a couple of updates from Southeast Asia. For those following the 1MDB saga, the Guardian reports that the U.S. Department of Justice recently served an arrest warrant on the London offices Clyde & Co in an effort to recover $330 million it is holding on behalf of a client, money that is linked to the scandal-hit Malaysian fund. And the American Lawyer asks if international firms are still willing to stick it out in Myanmar following the military coup.

Your need to read: Five links to improve your life

As we settle into 2021, here are the tough questions that law firms need to ask themselves before they can take advantage of whatever challenges await them in the months ahead, says JD Supra.

On the flip side, the pandemic might have been the technology disruptor the legal industry badly needed, according to a contributor to the Forbes Technology Council.

Then, Thomson Reuters offers six ways law firms can set themselves up for innovation success.

An interesting piece on leadership comes from Forbes, which suggests 10 tips to help you convene a diverse group of professionals, produce value and lead.

And from the employees’ perspective, Reuters has a Q&A with training and consulting firm head Mary Abbajay on effectively managing your boss.

And finally: Quote of the week

“I’m here live, I’m not a cat.”

—Texas attorney Rod Ponton appears on a Zoom hearing before 394th Judicial District Court on Tuesday with a picture of a kitten where his head should be. The judge, Roy Ferguson, later tweeted: “If a child used your computer, before you join a virtual hearing check the Zoom Video Options to be sure filters are off.”

By the way, have—you submitted for the ALB Employer of Choice 2021, ALB Super 50 Disputes Lawyers 2021 and ALB Firms to Watch (India) 2021 listings yet? They are closing very soon.

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