AIADMK leader J Jayalalitha had demanded Jethmalani's removal from the Union Cabinet accusing him of having made certain admissions under oath before a metropolitan magistrate in Mumbai with regard to receipt of substantial amounts of foreign currency abroad in possible violation of section 8(1) of FERA.

Jethmalani had earlier rejected Jayalalitha's allegations against him and said he had received no such money ever and described the charges as ``most ridiculous and irresponsible''. Sources said the current exercise by the ED was to satisfy the investigating officer on whether there were any reasons to believe that the charges had somecredibility.

In case it was established that the charges had any credibility, the ED's legal department would examine how to go ahead with the investigations. It would only be after this stage that the ED would formally begin its probe, they said.

Asked whether the present status of examination of the allegations was similar in nature to the Preliminary Enquiry (PE) conducted by the Central Bureau of Investigation (CBI), the officials replied in the negative saying the ED inquiry was much below the level of PE. They said the Directorate had never taken a position that it would not investigate the charges levelled against Jethmalani. They said under FERA, ED had powers to suo motu take cognizance of such allegations.