Andaleeb Sehgal

New Delhi, Nov. 7: Officials of the Enforcement Directorate and the income-tax department are examining whether proceedings can be initiated against Andaleeb Sehgal and his firm Hamadan Exports for alleged payment of “illegal surcharge” in the UN oil-for-food programme.

Sehgal was today questioned by both enforcement and tax sleuths for several hours at the directorate’s Lok Nayak Bhawan office.

The authorities are examining whether economic offences were committed under legislation such as the Foreign Exchange Management Act (Fema), the Money Laundering Act and Income-Tax Act.

Notices had been posted yesterday at the home and offices of Sehgal, known to be close to the Natwar Singh family, asking him to appear before the directorate.

Sources said that the probe may turn out to be a “long one” as it is a multi-agency investigation. They said the directorate has adopted a “work-backwards” approach and are verifying and collating the receipts and data found during searches on Sehgal’s residence and business premises on Sunday.

“The money laundering aspect, if any, is being looked into very thoroughly. The receipts of money are being tallied with the bank accounts,” a source said.

Since Hamadan Exports is a registered trading house, the RBI will be asked to find out whether any violation occurred during remittances declared as export income, the sources said.

The Fema, which replaced the erstwhile Foreign Exchange Regulation Act (Fera), entails the setting up of a designated court for dealing with cases falling under its ambit. Such a court is yet to be set up.

Sources said the directorate, the authority entrusted to deal with the case, may not be sufficiently equipped as it involves several aspects much beyond its mandate.