22 Jan 2012

Virtual Legal Due Diligence In India

International community is constantly looking forward towards using information and communication technology (ICT) for legal and judicial purposes. Whether it is establishment of electronic courts or use of technology for online dispute resolution (ODR), technology is increasingly being used for legal and judicial purposes.

The latest to add to this list are electronic legal due diligence, technology related due diligence and online legal due diligence. These concepts show the growing use of virtual legal due diligence for various legal and administrative purposes.

Parallel and simultaneous development in allied fields is also happening. For instance, use of data rooms for legal compliances and mergers and acquisitions in India and abroad is passing through a transformation stage. Virtual data rooms (VDRs) are replacing the traditional data rooms to facilitate cost effective and more efficient due diligence and merger and acquisition activities. In fact, virtual data rooms and legal compliances are increasingly seen as inseparable and more stress is given to perform virtual legal due diligence in India these days.

Virtual data rooms and virtual legal due diligence in India would also facilitate e-discovery in India. Presently, e-discovery services in India are still grooming. Some recent episodes have shown the importance of e-discovery for social media in India.

The techno legal issues of virtual legal due diligence in India must also be taken care of. There are many technical and legal requirements that must be met before virtual due diligence can be used for legal and administrative purposes. These techno legal requirements are also required to be fulfilled to escape various legal obligations and liabilities that may arise due to improper use of virtual data rooms.