Mysore Prasanna reflects on a changed Bangalore, the pursuit of learning and the realities of investing in India
There has been a sea change in what Bangalore was when I left in 1991 and what it had become when I returned in 2010. It was absolutely remarkable. It had transformed itself, but at the same time, it felt a little laid back compared with the buzz of Mumbai. I couldn’t feel in Bangalore the sense of urgency which is palpable in Mumbai both in the professional and personal sense.
On the professional side, Bangalore’s legal practice lacks variety and vibrancy when compared with Mumbai and Delhi. However, it certainly fares well when pitched against Chennai. The Chennai legal market is typically very conservative and old school. There is a lot of premeditation, deliberation and discussion before someone can express an opinion – and that too with many qualifications. Family lawyers still hold a sway in Chennai and law firms are yet to gain confidante status.
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Perhaps one reason why many law firms in Bangalore are less busy is because they do not have completely home-grown briefs. Instead, to some extent they rely on “work share” from their counterparts in Mumbai or Delhi. Secondly, the predominance of IT has put the legal profession in a bit of a bind. Either lawyers have clients who cannot afford to pay much, or a small cluster of big players who can pay, but are in short supply. There’s a constant swing from one end of the spectrum to the other. I don’t see that changing much so long as IT and e-commerce continue to dominate the landscape here. Smaller law firms and boutique practices will continue to struggle unless they are acquired.
The incentives provided by various state governments are attracting foreign investment. I am not too happy with what Karnataka is doing in this respect. The self growing and self sustaining IT industry is more the effort of entrepreneurial leadership than the initiatives of the state. By contrast, the political establishment in Chennai has constantly made the right noises about promoting industry, and approval and licensing processes are less cumbersome there. Their bureaucrats seem to be more proactive than in Karnataka. Agencies and officers in Chennai are constantly looking to provide opportunities for industries to come and set up shop.
The kind of land mass available within a 50-kilometre radius of Chennai is also far better than what is available in Bangalore. This is partly because of the real estate boom. Aggregation of land holdings to accommodate an industry is becoming increasingly difficult in Bangalore. In many areas there are green belts and agricultural belts so it becomes difficult for the government to consider land acquisition. The fact that the Congress party and other non-Bharatiya Janata Party parties have been opposing the land acquisition bill tooth and nail very clearly shows that acquisition of land for developmental purposes will be on hold for quite some time.
Whether foreign companies are looking to invest in Bangalore or more broadly in India, patience is vital. It’s very important to pick the right local partner if you are coming in on your own. Partners should not be chosen for administrative convenience, their influence with regulators or their government ties as this will only lead to angst and mistrust. Keep yourself clean and choose a local partner for financial and business reasons because you will be answerable to a strong parent board in your own jurisdiction.
When selecting advisers, ensure there is absolutely no conflict of interest. Legal practice in India is evolving to higher levels of professionalism, but at certain levels, not much regard is given to conflict checks. Law firms should be upfront about conflicts and refuse matters accordingly.
There is lot of interaction now between Indian business and foreign law firms. The prime minister and law minister’s utterances regarding foreign law firm admission with certain conditions suggest it may materialize sooner rather than later. When that happens, there will be realignment; there may be some consolidation. Indian law firms certainly have the ability, capacity and competency to compete with foreign firms. But they should continue to be cost-effective!
Let me now say a few words about my pet project: the Lawyers Round Table (LRT). When I moved to Bangalore in 2010, I found that people weren’t making much of an effort to mingle informally and exchange views. Thus was born the idea to start a regular LRT. Initially, it began with a few attendees who met for a meal and talked about new developments and experiences in the legal industry. The numbers soon grew and I found myself forming a structured programme where learning was possible in a relaxed environment.
We’ve had some terrific responses and participation from the big four accounting firms, law firms and general counsel on topics such as tax structuring, dealing with an expert witness, and the relevance of mediation to corporate disputes. These sessions give people a chance to meet up and say hello, but also to exchange thoughts and views on new developments. Our next session will be a master class on due diligence hosted by Tatva Legal. I do hope more internal and external counsel join LRT and benefit from the informal exchange of views and sharing of knowledge
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Mysore Prasanna is an independent corporate law consultant. He has 40 years of experience in the legal profession and has held senior general counsel roles across a number of companies including Aditya Birla Group, Larsen & Toubro and Brooke Bond. He is based in Bangalore and can be contacted at mrprasanna@gmail.com.
