What next?

Government sources say that if no FEMA violations are laid at Natwar's door and he is exonerated, then he will have to be taken back into the Cabinet.

"If there is even a shadow of doubt then we will have to cut a deal with him," said a minister.

This is due to the fact that Singh now has powerful friends outside the Congress, like the Left parties and the Samajwadi Party who view the old Cold War warrior as an ally against the government on the nuclear deal issue and even economic reforms.

Singh, in fact, may be retired to a lucrative post.

"The post of Indian ambassador to the US is to fall vacant very soon, that is a possibility," the minister said.

"We would have preferred if the report was submitted on August 15. That would have given us time to come up with a plan to control the damage," the minister said.