Northern Ireland Secretary Mr Peter Mandelson today faced demands for a full explanation of his role in an application for British citizenship made by a controversial Indian tycoon who helped bail out the Millennium Dome.
The disclosure that Mr Srichand Hinduja received his UK passport after Mr Mandelson approached the British Home Office to find out whether his application would be welcome prompted Tory claims that he had "pulled strings".
Mr Hinduja, together with two of his brothers, is facing corruption charges in India over ‘kickbacks’ they allegedly received in a 1986 arms deal.
A statement issued tonight by the Northern Ireland Office insisted Mr Mandelson had not actually helped in Mr Hinduja's application to obtain British citizenship.
"If you ignore the headline of this story and read the facts, Mr Mandelson did not assist in this passport application," a NIO spokesman said.
"He did not support or endorse any passport application, nor would he have considered doing so."
Although Mr Mandelson had responsibility for the Dome when he was Cabinet Office Minister, the statement added that he had not been involved in handling a Stg£1 million donation by Mr Hinduja and his brother Gopichand to pay for the faith zone.
Earlier, senior Labour Party sources confirmed Mr Mandelson had made inquiries through his private office to find out whether Mr Hinduja, who had already had one citizenship application turned down, was likely to succeed if he reapplied.
In a statement to The Observer, Mr Mandelson confirmed his involvement but insisted he had done nothing wrong.
"To the limited extent that I was involved in this matter, I was always very sensitive to the proprieties," he said.
Prime Minister Tony Blair's official spokesman said: "This was an issue raised by the Hindujas and it was passed to the Home Office and when specifically they asked Peter to endorse or support any application he refused, perfectly properly and appropriately.
"He did exactly what any other minister would do, which is pass it to the relevant department, which is the Home Office. Peter did not get involved - beyond being asked to get involved, which he did not."
PA