The discovery has caused considerable disquiet as the government took unprecedented retaliatory measures against US diplomats after Devyani Khobragade was arrested on charges of visa fraud and allegedly mistreated in New York.
Government sources said getting US passports for her daughters indicated Khobragade kept her options open to benefit from the best of both worlds. Devyani Khobragades daughters, aged four and seven, are in New York with their father, an American citizen.
When contacted, Devyani Khobragade, who is posted as director in the MEAs Development Partnership Administration, refused to comment.
According to rules, a diplomats spouse is also expected to take up Indian citizenship. Although Devyani Khobragades husband has applied, the citizenship has not come through because of stringent home ministry rules which require the applicant to stay in India for a stipulated period.