The 12-page ED show-cause — a copy of which is with The Indian Express — establishes Jagat Singh’s links with the mysterious offshore firms, Coburg and Fynmores. But no specific allegations have been listed against Natwar Singh in the show-cause.

The ED notice takes the money trail in the scandal significantly further, revealing that from the oil-for-food funds, Jagat Singh allegedly transferred $45,000 illegally to bank accounts in Cyprus, Korea and Israel.

The show-cause notice also states that part of the $89,000 Jagat Singh allegedly transferred in contravention of Foreign Exchange Management Act (FEMA) rules was used for “obtaining’’ a Mercedes Benz car, now liable to be confiscated by the Central government. The confiscation of the car was first reported by The Indian Express though Jagat Singh denied he had anything to do with it.

Other than Natwar Singh and Jagat, the ED show-cause also names Andaleeb Sehgal, Vikas Dhar, Mohammed Asad Khan and Aditya Khanna. It also names three companies which have been part of the ED’s international probe: Hamdaan Exports, which was named in the Volcker report, and is shown to be registered both in New Delhi and the British Virgin Islands and Indrus Trading Company with addresses in Delhi and London.

The show-cause notice alleges that the persons named (including Natwar Singh) “jointly and severally’’ acquired foreign exchange totalling $8,98,027 after they obtained two oil contracts. Of this, $7,48,550 was transferred without “general or specific’’ permission of the Reserve Bank of India to a bank account with the Jordan National Bank. Of this, $1,46,247 “commission’’ was routed to Indrus Trading company in London in contravention of FEMA rules, alleges the ED. Natwar Singh, Jagat Singh, Andaleeb Sehgal, Vikas Dhar and Aditya Khanna then failed to “take all reasonable steps’’ for repatriation of the $8,98,027 to India. Another batch of show-cause notices to the Khanna family is expected to be dispatched shortly.

Specific roles of the persons named in the ED show-cause notice are:

• Jagat Singh: Without RBI permission, Jagat Singh made payments and transferred $89,000 to the account of M/s Coburg Associates SA with Llyods TSB and further $14,5000 to Fynmores, that is to persons residing outside India, in contravention of FEMA rules. From the account of Coburg, Jagat Singh “made payments and transferred $10,000 on 27th June, 2001, $20,000 on 27th June and $15,000 on 19th July to accounts in Cyprus, Korea and Israel respectively,’’ the notice states. Of the $89,000, $43,793 was received from Coburg and routed to the account of Hamdaan Exports, New Delhi “by misdeclaring the same as receipts of outstanding export proceeds of Hamdaan Exports. This amount appears to have been used for obtaining Mercedes Benz Car No. DL-3CQ-1010, for use, control and absolute dominion of Shri Jagat Singh.’’

• Andaleeb Sehgal: He floated two companies outside India, that is Indrus Trading Company, Jersey, Channel Islands and Hamdaan Exports, British Virgin Islands, without permission of the RBI. He also opened a bank account with the Jordan National Bank, Limassol, Cyprus in his name without RBI permission. He acquired foreign exchange worth $62,000 and transferred the same to residents outside India, all in contravention of FEMA regulations. The Jordan National Bank account, the notice states, presently has a balance of $1,930 in May 2006 which is liable to be confiscated.

• Mohammad Asad Khan: Without RBI permission, dealt in foreign exchange totalling $3,00,268 in connection with one of the two oil contracts with unauthorized persons and thus, also acted in contravention of FEMA.

• Hamdaan Exports, New Delhi: Without RBI permission, dealt in foreign exchange totalling $8,98,027 for two oil contracts. From the company’s Jordan National Bank account, $1,46,247 was routed to Indrus Trading Company and of this, $89,000 was transferred to Coburg. Further, of this amount $43,793 was received from Coburg into the account of Hamdaan Exports in New Delhi. “This amount’’ the show-cause states, “was withdrawn in cash from the account of M/s Hamdaan Exports and used for purchase of Mercedes car’’.

• Hamdaan Exports, British Virgin Islands: Through Andaleeb Sehgal, the company dealt in foreign exchange totalling $7,39,241 which was routed to the Jordan National Bank, Limassol, Cyprus. The account has a balance of $156 which is liable to be confiscated.

• Indrus Trading Company, Jersey and New Delhi: Has Andaleeb Sehgal and Aditya Khanna as directors. Dealt in foreign exchange totalling $1,46,247 (that is, $96,785 acquired as commission from Masefield and $49,461 transferred from the account of Hamdaan Exports) and made the following payments: $89,000 to M/s Coburg and $14,5000 to M/s Fynmores. Indrus further transferred $17,500 to Hamdaan Exports, New Delhi and $7,000 to Sehgal Consultants, New Delhi. They held $1,46,247 in their account with Barclays Bank, Jersey, Channel Islands and failed to either take RBI permission or repatriate the funds.

ED can’t get away, will seek reply in House: Natwar

JAIPUR: Reacting to the ED show-cause, Natwar Singh told reporters that it was “an attempt to defame me”. He said his lawyers were studying the notice and would advise him on further action. This is what he said:

• The Pathak probe clearly stated that the financial dealings had not reached me and that I was not involved in the scam

• Over the past 10 months, the ED itself has spent crores of rupees in the name of probing Rs 70 lakh? In order to justify the time and money they have spent, they have issued these noticesn

• The ED will have to reply to this and I will be the one who will demand a reply in Parliament. The ED can’t get away without answers