Oil-for-food: ED notices for Natwar, others

The Enforcement Directorate (ED) has issued notices to former external affairs minister K Natwar Singh, his son Jagat Singh, and his son's friends Vikas Dhar and Andaleeb Sehgal of Hamdaan Exports, for alleged irregularities in the Iraqi oil-for-food scam. They have been given time till September 14 to reply.

The notices, virtual chargesheets under the Foreign Exchange Management Act (FEMA), mention the letters, purportedly written by the former minister to officials in the Saddam Hussein regime introducing businessman Andaleeb Sehgal, a friend of his son Jagat Singh, and recommending him for contracts under the UN-sponsored oil-for-food programme, sources said.

Those served notices have been accused of abetting violations under FEMA.

The ED had questioned Natwar Singh on February 17 and 18 after it got a set of bank documents from Iraq and Jordan related to the scam, probed by Paul Volcker, former chairman of the federal reserve.

After they reply, the matter will go for civil adjudication, and financial penalties imposed if the accused are found guilty. The ED had began its probe in October last year.

The former minister, however, termed the notices "unfortunate" and said he and his lawyers would give a befitting reply on the matter.

"This is a very unfortunate state of affairs. A department of the central government is harassing and trying to defame me," Singh said.

Singh, suspended from the Congress, said he had not seen the notice so far but "my lawyers have told me that ED has served a notice for its probe in the oil-for-food scam."

"This is unfortunate because after nine months of probe by the Pathak probe panel, I was given a clean chit and the probe authority made it clear that there was no financial irregularities or personal financial gain to me," he said.

"This move of the ED has surprised me. I can only say that they are trying to justify their 10-11 months of work though they have found nothing against me," he said.

Asked whether he intended to file a defamation case against the ED, as reported by a section of media, Singh said, "Everyone is saying what they want. Even media is doing so. No one has contacted me. Why should I file a defamation suit. My lawyers will examine the whole issue and then reply to the ED."

Singh and others are believed to be filing reply to the ED notices by September 14.