INDIA Law and Practice Contributed by: Alina Arora, Samarth Gupta and Parth Singh, Shardul Amarchand Mangaldas & Co
Counter-Espionage and Insider Threat Obligations apply, and the government may claim privilege over unpublished official records under the Bharatiya Sak - shya Adhiniyam 2023 (BSA), with the court deciding such claims (see 7.5 Legal Professional Privilege and Confidentiality ). 7.4 Dawn Raids and Unannounced Inspections Unannounced searches are lawful in certain cases. The ED, the CBI, the DRI, and the tax authorities may search business premises and residences on reasons to believe (to be recorded in writing), without a court warrant. The person searched must permit entry and co-operate, but may: • verify the officers’ identity and authorisation; • require two independent witnesses; and • demand a list of seized articles. Obstruction and destruction of evidence are offences. There is no right to have a lawyer present during a search or interrogation. However, courts have occa - sionally permitted counsel at a visible but not audible distance during questioning. 7.5 Legal Professional Privilege and Confidentiality Legal professional privilege is statutory and sector- agnostic, with no national security exception. The BSA protects advocate‒client communications made during the engagement, except those in furtherance of an illegal purpose or revealing crime or fraud after the engagement. However, it does not extend to in- house counsel. The Supreme Court held in 2025 that investigating agencies cannot summon an advocate in respect of advice given or representation provided, except within the statutory exceptions. A privileged document seized during search is not automatically excluded from evidence; objection to its seizure should be taken at the first instance and, if necessary, contested in court. On classified mate - rial, the Supreme Court held in the Rafale review peti - tions ( Yashwant Sinha v Central Bureau of Investiga-
tion (2019) 6 SCC 1) that no statute empowers the executive to withhold sensitive documents from court, with disclosure governed by balancing public inter - est against the obligation to protect confidentiality in state affairs. 7.6 Debarment and Exclusion From Future Procurement Debarment is administrative and graded, under the Guidelines of the MoD for Penalties in Business Deal - ings With Entities. An entity may be:
• suspended pending inquiry; or • banned for a specified period.
Grounds for such action include, inter alia, corrupt practices, breach of the integrity pact, and national security. Courts in India have set aside suspensions that were based solely on the pendency of investiga - tion. Consequences extend to, inter alia: • cancellation; • refund with interest; • encashment of bank guarantees; and • exclusion from future tenders. Under the GFRs, conviction for procurement-related offences may result in government-wide debarment for up to three years. India does not have a formal self-cleaning mecha - nism. Affected entities’ process protections comprise: • a notice to show cause being served on the entity; • a right of reply; • a reasoned order; and • judicial review. 7.7 Civil Litigation and Dispute Resolution Arbitration under the Arbitration and Conciliation Act 1996 is the usual mechanism for resolution of contractual disputes with the MoD. Foreign awards from notified UN Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the “New York Convention”) states are enforceable in India. Two qualifications apply, as follows.
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