Yesterday, CNN-IBN had reported that the MoD has issued an advisory after receiving information from ‘‘official agencies.’’ The channel quoted the advisory as saying that ‘‘persons by the names of Vipin Khanna, Aditya Khanna and Arvind Khanna and certain companies they are associated with have been involved in the introduction of products of arms manufacture to both India and Pakistan...all necessary action be taken to fully safeguard India’s security interest. The people and companies they represent be denied access to any defence personnel and facility.’’

Following the parallel probe into the Khanna empire, the ED is now set to dispatch not one but several show-cause notices to the Khannas.

The first one will deal with the oil-for-food payments received by Aditya Khanna. Transactions traced to his brother Arvind Khanna—a Congress MLA from Sangrur who admits to doing business with the MoD—could be the subject of action under the Foreign Exchange Management Act (see box).

Incidentally, the name of Indrus and another company Coburg cropped up in the ED’s probe after a statement by Aditya Khanna himself. In this, Khanna had claimed that of the $70,000 share which Andaleeb got for the Iraqi oil deal, $25,000 came from oil firm Masefield via Indrus and $45,000 from Masefield to Indrus and was then routed via Coburg to Andaleeb’s company, Hamdan Exports.

Khanna is also said to have told ED that he received only $18,000 for the oil-for-food contract and that the remaining $15,000 was paid to British consultant John Ball.

‘We deal with Defence Ministry, did Rs 80-cr business last year’

... contd.