The Volcker panel had named Natwar Singh, who was divested of External Affairs Ministry, and the Congress party among the non-contractual beneficiaries of the oil-for-food programme in Iraq.
During his tenure, Dayal will also act as the special envoy of the government of India and hence liaise with the united Nations to go into the depth of the allegations made by Volcker.
Chatterjee said rules did not ordinarily permit the House taking up a motion on a subject pending before a court of inquiry but he had exercised his discretionary powers to allow the debate.
The Left parties were briefed about the progress of the probe.
Indian envoy arrives in New York to probe findings of Volcker panel