A little bird whispers that ongoing investigations into the oil hedging involving mega bucks has surfaced `sweeteners’ offered to people that mattered including a family holiday by the Arabian Sea in Goa.

Other matters too have come up and questions raised on whether the sunshine had been spread to a politico as well.

Well informed sources said yesterday that various questions arising include whether, if payments are to be made to the banks by CPC – such payments are currently on hold on orders of the SC – whether Exchange Control permission for the purpose will be necessary.

``Payments for hedges are capital transfers according to IMF definitions,’’ one well informed source said. ``That would imply that Exchange Control permission will be needed to make payment.’’

Investigations up to now suggest that certain Central Bank laid requirements have not been followed by the banks. Whether that will mean that the government can lawfully direct CPC not to make payments is a question that arises.

``Obviously the banks won’t take such a development lying down,’’ one source said yesterday. ``Already the `sovereign default’ phrase has been used. It can be an unpleasant slugging match.’’

Various forces are at play and information, possibly from those with axes to grind, is being made available.