'₹150cr council funds diverted': Bar Council co-chairman demands chairman's resignation
What's the story
The Bar Council of India (BCI) co-chairman YR Sadasiva Reddy has written to Chairman Manan Kumar Mishra, demanding his immediate resignation. He accused Mishra of deviating from the standards expected of the BCI and alleged that the council has been mismanaged under his leadership. In a six-page letter dated August 22, Reddy accused Mishra of serious misconduct, including diverting ₹150 crore from council funds to a private trust he controls and appointing family members to key positions without any transparency.
Allegations detailed
New trust registered in 2020
Reddy has asked Mishra to tender his resignation within 15 days.
In his letter, Reddy alleged that the Bar Council of India Trust was allowed to become defunct.
He claimed a new trust, 'BCI Trust PEARL, First,' was registered on September 17, 2020, with trustees selected by Mishra.
A resolution was then moved to transfer ₹150 crore from BCI funds to this trust, Reddy wrote, adding that no member of the council has seen a copy of the trust deed.
Legal concerns
Reddy questions legality of fund transfer
"...I know of no provision...which permits the corpus of a statutory regulator to be transferred to a private trust registered by its own Chairman," Reddy stated.
Reddy also alleged that law colleges seeking BCI approval were being pressured into making "contributions" to this trust, with amounts ranging from ₹25 lakh to ₹1 crore.
"If this is correct, and I have received nothing from your office to indicate that it is not,...it is a matter of the utmost gravity," he wrote.
Appointment concerns
Staff connected to Mishra
Reddy further alleged that many staff members of the Council are connected to Mishra, including his family.
He claimed no records justifying these appointments have been presented before the Council.
The letter also slammed a recent directive from Mishra's office directing State Bar Councils not to enroll graduating students of NALSAR University, Hyderabad, after students objected to the invitation sent to Chief Justice Surya Kant for their convocation.
Students
Mishra's has been Chairman since 2012
"That single act... has done more damage to the standing of this Council than anything else in its history," Reddy said.
This directive was later withdrawn.
Reddy also slammed Mishra's uninterrupted tenure as Chairman since 2012, despite the term of the office being only two years.
"An elected office that has one occupant for fourteen years has ceased, in any real sense, to be an elected office," the letter said.
Audit request
Reddy demands special meeting, independent audit
Reddy has demanded a Special Meeting of the BCI to discuss these issues and an independent audit of both the Bar Council of India and 'BCI Trust PEARL, First' by a firm empaneled with the Comptroller and Auditor General (CAG).
He also called for stopping all "contributions" from law colleges.
Before concluding his letter, Reddy noted that young advocates, Student Bar Councils of National Law Universities, and even members of Mishra's own bar association have publicly demanded his resignation.
Response
I will not step down simply: Mishra
Mishra has since responded, saying he will not step down.
"I have served as Chairman of the Bar Council of India for 12 to 14 years because I was elected. Manan Mishra represents 25 lakh lawyers; he will not step down simply," Mishra said.
Regarding his long tenure, he said, "Bar Council of India is a statutory body under the Advocates Act...created by Parliament. Now the act does not limit any sort of restriction on the tenure of the chairman."