India seeks possible U.S. tax violations as stand hardens in diplomat’s row

India has sought information about staff in American schools in the country for potential tax violations and revoked ID cards of U.S. consular officials and their families, in retaliation for the arrest of an Indian diplomat in New York.

The measures reflect that the two countries are no closer to a resolution of a diplomatic dispute over the treatment of Deputy Consul General Devyani Khobragade this month on charges of visa fraud and underpayment of her housekeeper.

Khobragade, who has denied the charges, was handcuffed and strip-searched while in custody, sparking outrage in India.

An Indian government official said on Friday that New Delhi had asked the U.S. embassy to provide details about people working in American schools and other U.S. government facilities to determine if they had permission to do so and if they were paying taxes that are binding under Indian law.

Diplomats’ spouses who take up work in schools or other embassy facilities are supposed to inform the host country.

Violations of this kind had often been ignored, but now India would not turn a blind eye, the official said, speaking on condition of anonymity.

The U.S. embassy declined to comment on the latest steps.