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A diplomatic spat intensifies between the U.S. and India - over the arrest of a senior Indian diplomat in New York. On Wednesday, India revised work conditions - and froze imports of duty-free alcohol - in an effort to rein in perks for staff at U.S. consulates. The measures are the latest form of retaliation - after the arrest of India's deputy consul general at its consulate in New York on December 12. Despite claiming immunity, Devyani Khobragade - was charged with visa fraud and underpaying her Indian housekeeper - and released on $250,000 bail. Daniel Arshack is Khobragade's attorney. SOUNDBITE: (ENGLISH) DANIEL ARSHACK, ATTORNEY FOR DEVYANI KHOBRAGADE, SAYING: "She was handcuffed, she was strip-searched, she was put in a locked cell." The U.S. Justice Department confirmed the strip-search - and a Indian government source confirmed a cavity search. India is outraged - and protests broke out in Punjab province and outside the U.S. Emb