Indian diplomat's claim of immunity challenged by U.S. prosecutors

Indian diplomat Devyani Khobragade (C) leaves with her father Uttam Khobragade (L) from the Maharashtra Sadan state guesthouse to meet India's Foreign Minister Salman Khurshid in New Delhi January 11, 2014. REUTERS/Stringer

NEW YORK (Reuters) - The Indian diplomat whose December arrest led to a major international dispute holds no immunity from U.S. prosecution and should continue to faces charges of visa fraud, Manhattan federal prosecutors said in court papers filed Friday.

Devyani Khobragade was arrested on December 12 on charges that she lied to U.S. authorities about what she paid her housekeeper. She was stripped-searched while detained in Manhattan federal courthouse, which led to a diplomatic firestorm between India and the United States that continued for weeks.