CLINTON DINES WITH BIZMAN IN FRAUD CASE

Former President Bill Clinton rubbed elbows with a man wanted on fraud charges in India during a posh fund-raiser held at a ritzy Wall St. hotel last night.

Clinton denied knowing anything about the charges against Sant Singh Chatwal, a naturalized U.S. citizen who was born in India, where authorities have charged him with bilking a state-run bank out of $9 million he borrowed in 1994.

"I don't know anything about that," the former President told the Daily News while surrounded by adoring supporters at the American Indian Foundation's fashion show fund-raiser in the Regent Hotel. The event raised money for victims of the Gujarat earthquake.

Chatwal, operator of the Bombay Palace restaurant chain also was one of the biggest soft-money contributors to Sen. Hillary Rodham Clinton's November campaign. He has been linked to at least $210,000 in contributions.

He declined to comment on the charges made against him last December by India's Central Bureau of Investigation, the country's equivalent of the FBI. He also did not want to discuss his financial dealings with the Clintons.

Bill Clinton and Chatwal sat at different tables during the fund-raiser, which raked in almost $2 million to help in relief efforts for earthquake victims.

However, Bill Clinton was seated with Chatwal's son, Vikram, a foundation trustee. The organization is mostly made up of Indian-American businessmen.

The elder Chatwal, who traveled to his homeland to help arrange an earthquake-relief visit by Clinton in April, was accused of fleeing to Vienna after Indian authorities made a failed attempt to detain him at Bombay's Sahar International Airport.

Chatwal later returned to New York, wanting to set the record straight, a spokesman said at the time. But the restaurateur has yet to address the allegations made against him.

Chatwal also runs the Hampshire Hotels chain in New York City. According to the Times of India and the Indian Express, he is saddled with titanic debts. They include back taxes and loans owed to failed banks in the U.S., along with a forced bankruptcy in 1995.

Clinton, warmly received by about 750 people attending $1,000-a-plate event, joked he was not running for office. But thanked those who supported his wife's senate campaign.
"A lot of you helped my wife become a New York senator," he said to a thunderous roar from the audience. "I'm grateful for that."

Wednesday, June 13th 2001, 2:21AM
Source: Daily News