Showcaused: Natwar & son by ED

NEW DELHI: The Enforcement Directorate (ED) has issued showcause notices to former external affairs minister K Natwar Singh, his son Jagat, and others in the Iraqi oil for food kickbacks investigation.

In addition to the senior Congress leader and his son, businessmen Andaleeb Sehgal and Vikas Dhar and two firms Hamdan Exports and Hamdan India have also been issued notices by the investigative agency.

All of them have time till September 14 to reply to the notices — which come close to charging Mr Natwar Singh and company with violating the Foreign Exchange Management Act (FEMA). After the replies are filed, the matter is likely to go for civil adjudication and financial penalties could be imposed, if those issued the notices are found guilty.

The ED’s moves comes within weeks of the Justice RS Pathak Inquiry Authority having absolved Mr Singh and his son Jagat of having made any personal financial gains from the transactions under the UN oil-for-food programme.

However, the Pathak authority did find Sehgal, a friend of Jagat Singh, as having benefited from the scam which involved paying kickbacks to the Saddam Hussein regime, as per the Volcker report.

Those served the showcause notices have been alleged to abet violations under FEMA. Under the act, abetment is deemed as a violation. According to sources quoted by agencies, the showcause notice also mentions the letters purportedly written by Mr Singh to Iraqi officials in ’01 introducing Mr Sehgal and recommending him for contracts under the UN-sponsored oil-for-food programme in Iraq.

Reacting to the news, Mr Singh said it was “unfortunate” that the ED had served notices to him and his son, but said his lawyers would give a reply to the department in a fitting manner.

“This is a very unfortunate state of affairs that a department of the Central government is harassing and trying to defame me,” Mr Singh was quoted by agencies as saying .

The diplomat-turned-politician, who has been suspended from the Congress, said that the ED had done this despite the “clean chit“ given to him by the Pathak authority in the case.

“This move of the ED has surprised me and I can only say that they (ED) are trying to justify 10-11 months work, though they have found nothing against me, “ he said. The ED began its probe in October last year.

The Pathak report has indicted both Mr Singh and his son for having “misused“ their position in the Congress party to help those known to them in the procurement of oil coupons under the UN sponsored programme run by the Saddam Hussein government.