Once the Congress party returned to power in 2004, Natwar Singh was made Minister for External Affairs in Manmohan Singh government.
The year 2005 proved to be disastrous for Natwar Singh. It was in this very year that his name cropped up in Volcker committee report on corruption in “oil for food” programme.
Paul Volcker led committee alleged that Congress party and Natwar Singh and his son Jagat Singh were non-contractual beneficiaries of the “Oil for food” programme. It was also alleged that Sonia Gandhi led Congress party used the illegal money to contest 2004 general elections.
An embarrassed Congress party decided to wash its hands off the entire controversy and the entire blame was put on Natwar Singh. Natwar Singh was first expelled from the cabinet and was suspended from the party later on. Natwar Singh who was finding it difficult to cope with the humiliation heaped on him by none other than the family that he served for 45 years left him completely crestfallen. In 2008, he finally resigned from the Congress.