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However, a lawyer for the diplomat says that figure was dr. khobragade's salary, not the nanny's. >> she'll be completely vindicated. >> reporter: lawyers for both the diplomat and the nanny say attempts to resolve the dispute financially were unsuccessful. >> watching that obviously there are a lot of legal questions here. so sonny hostin, our cnn legal analyst joining me tonight. in case you missed it, thanks for sitting at the table here. >> sure. >> let's bring with 3:$3.31 an hour. it's outrageous a diplomat would be paying a housekeeper, nanny, whatever you want to call it. but is it leg...

Have been brought to the table in the processing of the arrest. >> reporter: the cause of the arrest according to these documents, allegations that she falsified a visa application about how much she paid her housekeeper. prosecutors claim the housekeeper was over worked and paid less than $3.31 an hour. >> reporter: she pleaded not guilty and has been released on bail. officials in india are now demanding she be allowed to return home. >> reporter: she worked here at the indian consulate in new york city and sent an e-mail to her colleagues thanking them for their support. the controversy has...

Firing back, removing -- just take a look right there -- removing security barriers outside the u.s. embassy. pamela brown is here with much more on this. what's going on, pamela? >> officials in india seem to be more outraged over how the diplomat was arrested than why, calling the treatment barbaric. they are taking action and protest against the u.s. in several different ways. meantime, american officials acknowledging this diplomatic dispute is a, quote, sensitive issue. watch as police remove the concrete security barriers in front of the u.s. embassy in new delhi. newspapers in india rep...

Complaint khobragade severely underpaid her babysitter only paying her $3.31 an hour, far less than minimum wage. the complaint also alleges the diplomat worked her babysitter far more than the 40 hours per week, allegedly without overtime pay and then lied about all this on visa documents, a violation of u.s. law. >> my daughter has not done anything wrong. she has nothing to do with the visa process. >> reporter: state department diplomatic authority arrested her after she dropped her daughter off to school. her lawyer says she pleaded not dpilty. her arrest sparked outrage among indian offi...