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.’’

... contd.