SC not to release passport of Vipin Khanna

New Delhi, Sep 15 (UNI) The Supreme Court today refused to order release of the passport of Vipin Khanna, a close relative of former External Affairs Minister Natwar Singh, which has been impounded by the Enforcement Directorate (ED) for his alleged involvement in the Iraqi oil-for-food scam.

A bench comprising Chief Justice Y K Sabharwal and Mr Justice CK Thakker in an order said "Having considered facts and circumstances of the case, it is not considered appropriate to make any interim order to permit the petitioner to leave the country. The petitioner will render full cooperation in the investigation and the ED shall complete the investigation by October end. The petition is adjourned till November 6, 2006. In case there is any threat to the NRI status of the petitioner, Government of India shall extend its full cooperation." Earlier the Additional Solicitor-General Gopal Subramaniam told the court that the petitioner was not cooperating in the investigation and his activities were of grave concern as they were prejudicial to national security and the companies owned and controlled by the petitioner were the beneficiaries of oil-for-food scam which came to light after the release of the Volcker report.

The counsel for ED also submitted that passport could not be released at this stage as the state was apprehensive that the petitioner would tamper with the evidence in England if he was allowed to leave the country.

Mr Subramaniam also contended that the petitioner had written a letter to the Attorney General of Jersey objecting to the cooperation being extended by the Attorney General to ED in investigation and huge amounts of commission received in the scandal have been remitted to the accounts of companies of the petitioner.

Former Attorney General Soli Sorabjee appearing for the petitioner however pleaded that his client was prepared to give an undertaking that he would come back and was also prepared to give security of any amount if permitted to leave the country.

He also argued that the petitioner's NRI status was under threat and if he does not return to England within 182 days then he may lose his NRI status.

Passport of Vipin Khanna was impounded by ED on May 5, 2006 and since then serveral extensions have been made to keep the passport impounded.

Mr Sorabjee also contended that the investigating agency which was invetigating allegations under FERA was not competent to impound the passport under Section 10 (3) of the Passport Act read with section 131 of Income Tax Act.

The court also recorded the statement made by counsel for the petitioner that his client would fully cooperate in the investigation of the case. The court also said in its order "We can understand the anxiety of the petitioner but according to the respondent investigation is at critical stage and is likely to take some time.

Be that as it may if the petitioner cooperates in the investigation, it would be completed by the end of October and there after the matter can be considered." It may be noted here that the other accused in the case include Jagat Singh son of Mr Natwar Singh who has since been expelled from the Congress party, his relative Andaleeb Sehgal, Aditya Khanna son of Vipin Khanna. Natwar Singh had to resign from the ministry following the disclosure made by the Volker Commitee that Natwar Singh was one of the beneficiaries in the scam which took place in 2001 during the regime of Saddam Hussein in Iraq.

Justice R S Pathak Inquiry Authority had given clean chit to the Congress but indicted Natwar Singh, Jagat Singh, Andaleeb Sehgal and others for their alleged involvement in the scandal. Natwar Singh was however found not to have taken any financial advantage in the case.

UNI AKS/SC DKB RP DS1700