Investigations by agencies in India apart, authorities in Jersey, Channel Islands have been probing allegations of money laundering and dealings in arms by persons involved in the Iraqi oil-for-food scandal, named in the Volcker report.

The Enforcement Directorate (ED), which was assisted by the British Serious Fraud Office in uncovering the money trail of the illegal oil surcharge, is now in the process of sharing details of its probe with authorities in Jersey where the oil-for-food payoffs were transferred and then partly routed back to India.

In September last year, Jersey’s Attorney General William James Bailhache provided the ED a snapshot of their own investigations and said that sale of arms to Pakistan and India by companies and entities involved in the India-end of the Volcker probe was also being investigated.

The AG’s letter gives details of huge foreign exchange inflows into the account of C I Law Trust. It also lists companies and individuals who are now under the scanner of Jersey authorities.

The letter, seeking further assistance from India, hints that Jersey may possibly seek extradition of Aditya Khanna (who’s alleged to have fronted the oil-for-food money transfers) and Andaleeb Sehgal (whose company Hamdaan Exports secured the Iraqi oil contracts) since violation of Jersey laws was also involved.

These are the companies/individuals under the Jersey scanner:

• C I Law Trust: A company located in Jersey which was unearthed by the ED, used for huge inward remittances into India.

• Nicholas St Clair Morgan: A Director of C I Law Trust, Jersey.

... contd.