Finally, the link: ED says Jagat, Natwar made money in Iraq deal

NEW DELHI, SEPTEMBER 3 : Jolted by moves to stay their action through pleas in the Supreme Court, the Enforcement Directorate (ED) has finally hand-delivered show-cause notices to nine individuals and firms, including former External Affairs Minister K Natwar Singh and his son Jagat Singh, in the Iraqi oil-for-food scandal. Both Natwar Singh and his son, a Rajasthan MLA, have been suspended from the Congress following their indictment in the scandal by the Pathak probe panel.

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...

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