Indian companies are hiring white-collar crime lawyers as agencies like the ED and SEBI increase enforcement actions. Asset seizures by the Enforcement Directorate rose significantly in FY26, prompting firms to conduct preemptive forensic audits and internal compliance reviews to mitigate legal risks.
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Indian corporations are changing their approach to legal risk by shifting from a reactive defense model to a proactive strategy. This trend is driven by a sharp rise in activity from regulatory bodies including the Enforcement Directorate, the Income Tax Department, and the Securities and Exchange Board of India. The environment for corporate governance has become more demanding, pushing companies to secure specialized legal counsel well before formal investigations or official summons occur.
Escalation in Regulatory Enforcement
Recent data highlights the intensity of this shift. According to the Enforcement Directorate’s FY26 report, the agency conducted 2,892 searches, reflecting a near doubling of activity compared to previous periods. Enforcement Case Information Reports saw a 39% increase, and asset seizures rose by 171% to reach ₹81,423 crore. Similarly, the Income Tax Department reported detecting over ₹30,444 crore in undisclosed income through 1,437 group searches in FY25, while the stock market regulator, SEBI, launched 159 investigations during the same timeframe.
Expansion of Specialized Legal Practices
In response to this environment, prominent Indian law firms are rapidly expanding their white-collar crime and internal investigation departments. Major firms such as Cyril Amarchand Mangaldas, Shardul Amarchand Mangaldas & Co., Khaitan & Co., JSA Advocates & Solicitors, DSK Legal, and Dentons Link Legal have reported significant growth in these teams. Cyril Amarchand Mangaldas has expanded its practice by approximately 30% over the last three years, now employing around 40 lawyers led by six partners dedicated to this field. Shardul Amarchand Mangaldas has nearly doubled its team size to over 40 professionals to handle the increased workload.
Proactive Compliance and Operational Challenges
Companies are increasingly commissioning internal forensic audits and compliance reviews to identify potential issues early. This shift is aimed at reducing financial, legal, and reputational damage. Legal experts report a rise in requests concerning whistleblower complaints, employee misconduct, anti-bribery inquiries, and cyber-enabled fraud. The complexity of these matters is compounded by the involvement of multiple agencies, such as the Serious Fraud Investigation Office, the Central Bureau of Investigation, and state-level Economic Offences Wings, often operating in parallel.
For companies with international operations, the pressure is further heightened by global regulatory standards, including the UK's Economic Crime and Corporate Transparency Act and the US Foreign Corrupt Practices Act. The challenge for Indian firms now lies in assembling multidisciplinary teams capable of managing digital evidence, data protection, and AI-enabled forensic investigations. Investors may monitor whether this increase in compliance spending impacts administrative costs in future quarterly results, though it is intended to provide long-term protection against the risks of regulatory penalties and operational disruption.