In a recent development, a Kolkata court has dismissed charges against Senior Advocate Nalini Chidambaram in connection with the Saradha chit fund scandal. The Enforcement Directorate (ED) had accused her of receiving ₹1.35 crore as legal fees from the group’s Chairman, Sudipto Sen, without issuing tax invoices. However, the court found that the amount did not constitute proceeds of crime.
Judge Prashanta Mukhopadhyay highlighted that the legal fees, a fraction of the total ₹2,000 crore involved in the scam, could not be linked to any illicit activities. He pointed out that lawyers often receive payments from clients embroiled in legal troubles, which doesn’t necessarily implicate the lawyers in the wrongdoing.
The ED had argued that the payments were made to Chidambaram between 2010 and 2012, alleging a lack of formal agreement or proper billing. Chidambaram responded that the payments were for her legal services, facilitated by M/s Saradha Reality India on behalf of another implicated party, Manoranjana Sinh.
The court also dismissed the ED’s allegations of Chidambaram’s involvement in attempting to influence a Securities and Exchange Board of India (SEBI) inquiry. The judge noted that no conclusive evidence supported these claims.
Ultimately, the court concluded that the fees paid to Chidambaram were legitimate and dismissed the case. The decision underscores the principle that legal professionals are entitled to receive fees for services rendered, regardless of their clients’ legal predicaments.
