Sant Singh Chatwal is an Indian-American businessman, owner of the Bombay Palace chain of restaurants and Hampshire Hotels & Resorts.^[1]

Biography

The son of a small tea stall owner in district courts Faridkot, Punjab claiming to have been a former pilot in the Indian Navy.^[2]. Chatwal migrated to Addis Ababa, Ethiopia, where in course of time he became the owner of two restaurants serving Indian cuisine. In 1975, he left the country with some of his savings and opened a restaurant in Montreal, Canada, where he created a new cuisine based on a blend of French and Indian elements.

Chatwal is close to former US President Bill Clinton and his family, and has made substantial financial donations to his election campaigns, as well as to other causes and campaigns of the Democratic Party, with many of whose prominent representatives he is on good terms. He has accompanied the Clintons on several journeys to India, and is a Trustee of the William J. Clinton Foundation.

In the news

Chatwal was accused of having defaulted on loans obtained from Indian and US banks including Lincoln Savings, First New York Bank for Business, Bank of Baroda, Bank of India and State Bank of India and filed bankruptcies on false grounds.^[3].He was arrested in Mumbai by India's Central Bureau of Investigation (CBI) in connection with defrauding Indian banks for over US $ 9 million. He was able to get out on bail and later fled the country. ^[4].^[5].

In 1997 Chatwal settled a case with the US government which is reported to have cost the American taxpayer $ 12 mil. [1]. Federal Deposit Insurance Corporation settled the case for $125,000 against the claims of $14 million caused due to the Bankruptcy of First New York Bank of which Chatwal was a director. FDIC claimed he used his influence to forward loans to himself or his family which caused the bank to collapse [2].

The IRS pursued him for approximately $4 million in unpaid business taxes, while New York state placed a lien seeking more than $5 million in taxes ^[6]. In 2001, the U.S. Bankruptcy Court in Manhattan discharged Chatwal as bankrupt after a six-year case involving debts of more than $100 million. Chatwal turned over his building to New York City to resolve a reported $2.4 million tax lien due to unpaid taxes on his New York properties.^[7].^[8]

Several mainstream newspapers have reported on his financial dealings including the New York Times, the Washington Post, Times of India and the Indian Express. The allegations against him proved an embarrassment for the Hillary Clinton campaign when her opponent, Rick Lazio, used them against her on account of the donations Chatwal made to the Clinton campaign^[9].^[10]. The Obama campaign team refused the offer made by Chatwal to raise funds due to his past and the controversies surrounding him.^[11] There are various other critical articles on Chatwal's financial dealings, e.g. in the Indian Express, the New York Daily News and News With Views. In the 80s, he was accused by the Securities and Exchange Commission of the United States of falsified SEC filings in connection with the Bombay Palace chain of restaurants ^[12].^[13]. He reached a settlement that prohibits him from ever being an officer or director of a public company.

The Indian Express recently reported that three criminal and four other cases have been filed against Chatwal or his associates since April 2009.^[14]. Former Indian Pime Minister I.K. Gujral is reported to have skipped a NY banquet, on a US visit, to avoid being associated with Chatwal at the function.^[15].

Irrespective of such controversies, Chatwal was awarded the Padma Bhushan by President Pratibha Patil on Jan.26, 2010. A report by the Indian Express led to a political controversy in India ^[16]. There were demandes to strip Chatwal of the award.^[17] [3]. The Indian government is reported to have begun an investigation into the matter.^[18]. A public online campaign to review the award process was also started.^[19]. In the USA an online petition has been started against Chatwal, fueled by negative reports on his business practices in the press.^[20].

The noted Indian journalist Vir Sanghvi has expressed his disappointment over the award and has decided to file a Right to Information Act Petition along with noted film maker Pritish Nandy to make the government declare the procedure by which it selects awardees.^[21]

In February 2010, a federal lawsuit accused two upscale bar lounges in Sant Singh Chatwal's Dream Hotel of labor law violations. Workers claim that they are not paid and labor laws are being abused.^[22]. Similar claims were made by workers at other properties too.

Legal issues

Chatwal pleaded guilty to fraud and witness tampering in Brooklyn, New York in April 2014.^{[23][24][25][26][27]} He will be sentenced on July 31, 2014.^[28]

References