New Delhi: The Supreme Court on Friday turned down a plea by Vipin Khanna, a close relative of the former External Affairs Minister Natwar Singh, for release of his passport impounded by the Enforcement Directorate (ED) for his alleged involvement in the Iraqi oil-for-food scam.

"Having considered the 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. In case, there is any threat to the NRI status of the petitioner, the Government of India shall extend its full cooperation," said a Bench consisting of Chief Justice Y. K. Sabharwal and Justice C. K. Thakker.

"NRI status under threat"

Appearing for the petitioner, senior counsel Soli Sorabjee said his client would cooperate in the investigation and was prepared to give an undertaking that he would come back to India and to furnish security if he was allowed to leave the country. If the petitioner did not return to England within 182 days, he might lose his NRI status.

Counsel said that since Mr. Khanna's was impounded on May 5 several extensions had been made to keep it so. Moreover, The ED, which was investigating the allegations against him under the Foreign Exchange Regulation Act, was not competent to impound the passport under Section 10 (3) of the Passport Act.

Additional Solicitor-General Gopal Subramaniam said the petitioner was not cooperating in the investigation and his activities were prejudicial to national security. The companies he owned and controlled were beneficiaries of oil-for-food scam, which came to light after the release of the Volcker Report.

The passport could not be released at this stage as the state apprehended that the petitioner would tamper with evidence in England.

The Bench said: "We can understand the anxiety of the petitioner but according to the respondent, investigation is at a critical stage and is likely to take some time. If the petitioner cooperates in the investigation, it would be completed by the end of October and thereafter the matter can be considered."

The court adjourned the hearing to November 6.

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