Monday, November 7 2005 10:15 Hrs (IST) - World Time -

New Delhi: Amid deepening crisis over the Paul Volcker report, the Government yesterday (Nov 6, 2005) launched a probe into the references made in it, with Enforcement Directorate (ED) and Income Tax (IT) officials questioning Andaleeb Sehgal, considered a close friend of the External Affairs Minister's son Jagat Singh.

Searches were also conducted by ED and IT sleuths at the residence and offices of Sehgal, partner in the Hamadaan Exports company which has been named in the UN Independent Committee has having been the non-contractual beneficiary in alleged payoffs in Iraq's oil-for-food programme.

Sehgal, who was summoned by the ED to its office this morning, was quizzed for over eight hours, sources said.

He was believed to have been questioned about the company's business interests in Iraq during Saddam Hussein's regime and whether it had clearances under the Foreign Exchange Management Act (FEMA) in view of the report's references, they said.

The ED had pasted a notice at the gate of Sehgal's house Saturday night (Nov 5, 2005) asking him to present himself for questioning.

As he was being quizzed, teams of IT and ED officials swooped upon his residence in Defence Colony and the company's office in Panchsheel Enclave.

Searches are believed to have been conducted at the offices of partner company Koyla also.