Devyani Khobragade stripped of her duties: NDTV

According to NDTV report, the ministry has said that Ms Khobragade did not take due permission before making statements and she was put  under "compulsory watch".

NDTV quoting sources said the action was taken against  Khobragade also "because the ministry is 'miffed' with the IFS officer for not disclosing that her children have US passports."

The diplomat is facing a vigilance probe over the issue, said the channel.

She earlier told the channel: "Some false reports have come in the newspapers that there is some illegality around my children's passports and that I hid a fact that my children have American passports. There is nothing of that sort, I myself informed the government that my kids were born in the US and are considered US citizens."

On the charges of her father and her involvement in the Adarsh housing scam of Mumbai,  Khobragade told the channel, "My father never handled the Adarsh file, therefore he never violated any of the service rules. The CBI has now closed its inquiry and neither my name nor my father's name figures in that report. So that rests the allegations of corruption and wrongdoing."

In January, then Indian diplomat in USA, Devyani Khobragade, returned to India after she was charged with a visa fraud over her maid, arrested, strip-searched and then kept in a lock up with ordinary criminals in New York triggering a huge controversy and bittering of relationship between two countries surrounding the treatment she was meted out.

After the incident in New York, she was transferred to a UN posting by India offering her more immunity though the charges against her remained. Devyani was the Deputy Consul General of India in New York when she was arrested.