Sant Singh Replies As Sant Saga Continues

New York- Soon after the last edition of India Monitor reported possible of $100 million in loses to creditors of Sant Singh Chatwal and his enterprise; there was a fast flurry of faxes and calls from Sant and his friends. Finally, last Friday, the undeterred, ever-resilient, and ever-charming Sant Singh Chatwal appeared in prison at the offices of this newspaper.

Sant's side of the Story

Never mind the unprecedented, encouraging calls from the readers, to every side there is at least one flip side. And here is Sant's Side of the story: In business, these things happen. It is nothing. I have never hurt anyone. I have only tried to help everyone. You watch- In 60 to 90 days, I will come out of this absolute clean and bigger and stronger than before. That is the gist of it. And it's difficult not to believe the mercurial and confident Sant Singh Chatwal, especially when he appears to believe his own forecasts so fervently. Besides, hasn't New York seen Trump triumph back from the brink of bankruptcy? So why not Sant Singh Chatwal?

Why Not Indeed? Possible $100 Million in Liabilities

There is one big difference Donald Trump never had to file personal bankruptcy. Despite Sant's tough talk, court and public records tell a very different story; other sources are even less charitable. In Sant's case, after years of frustration, three determined Indians bank moved a New York federal court to put him into involuntary insolvency in order to open him for questioning and discovery under the law. The state bank of India, Bank of Baroda, and Bank of India has combined personal judgments against Sant of over $22 million. Various federal, state, and city tax and other government authorities stand likely to claim over $30 million; these particular debts cannot be erased through bankruptcy. And early estimates show over 100 assorted other banks and creditors who are demanding as much $50 million. Also any claims which are proven which are proven to be obtained by fraud cannot be shielded by a Chapter & bankruptcy.

Sant Singh Replies As Sant Saga Continues

What is the value of Chatwal's Business Assets?

In the last 15 years, the Chatwal name has been associated with a string of restaurants, inns, hotels, real estate enterprise, as well as management and investment companies.

No doubt, in the NRI world of New York, the Chatwal name had the same flat and flamboyance as that of Donald Trump. According to Sant's recent summary of schedules and statements of financial affairs filed by A. Mitchell Greene of Robinson Brog Leinwand Greene Genoves & Gluck P.C., Chatwal has a 75% interest in Rockefeller Plaza Associates, 100% of Bombay Palace Restaurants Inc, 75% interest in Chatwal Avenue of the Americas Hotels Associates, 75% of Chatwal Associates, 100% of 313 South Atlantic Avenue Inc, 100% of Aberdeen Hotel Inc, and some interest in Dayton Innkeepers, Inc. Quite an impressive list except for one problem – each of these business has filled for Chapter 11 bankruptcy. Therefore the value of the assets is questionable.

Moreover, except for Rockefeller Plaza Associates which is still under bankruptcy, the other cases have been dismissed in the favor of the creditors or terminated under no asset Chapter 7 bankruptcy proceedings.

At this point, it is not entirely clear that the list of businesses cited in Sant's schedule is necessarily complete. For example, in a $5.3 million personal assessment of Sant Singh Chatwal, the New York State Tax Commissioner also mentions the following: One Station Square Restaurant Corporation; 3121 Ocean Avenue Restaurant Corporation; 9606 Third Avenue Restaurant Corporation; Park Plaza Hotels, Inc and the Ashley Hotel Corporation. Others public records reveals Sant's interest in: Broadway Associates, Chatwal Hotels and Restaurants Inc, Chatwal real Estate Investments, Woodward Affiliates, and Sant S. Chatwal Partnership. Finally there appear to be businesses in many other states and countries which have not yet surfaced.

Two Sides in the Arithmetic of Debt

Sant Chatwal's summary of schedules list $17.6 million in debts. Here too, a glance at publicity available judgment records reveals completely contrary figures. Led by the bank of Baroda with loses of $13.4 million, Bank of India with $7.5 million, and State Bank of India with $1.4million, the three Indian banks alone have personal judgments against Chatwal of over $ 22 million.

Others creditors who have already obtained judgments are: Banks Leumi Trust Co. for $2 million, Raglan Realty Company for $0.6 million, Al Tawfeek Company for Investment Funds for $23.9 million, Al Barak Baraka Bancorp (California) Inc for $3.5 million, Megraj Bank Ltd ( UK) for $3.1 million, Lawrence Ellman for $ 1.9 million, Crossland Federal Savings Bank for $12.5 million, Griffin Equities for $6.7 million, Internal Revenue Service $1.2 million, New York State Tax Commissioner for $5.3 million. Remarkably, this is only a partial list of known, entered judgments of some of the largest creditors. Already there are over 120 creditors.
Other Mysteries And Contradictions

Questions abound. How does a person with $ 100 in his bank account and personal property worth $ 2,600 accumulate debts of $100 million? How does hotel manager with two dependents manage to be chauffeur-driven in a fancy, late-model European car? How does someone who spends 40% more than he makes lives in a posh penthouse?

This year, he will earn $50,100 and he will spend almost $ 72000. The plain fact is that is not India but America and anything is possible in America. After all such stranger-than-fiction type tales about impressionable role models like Sant Chatwal fire the imagination and drive all would be- immigrants.

Releasing pictures that show him looking handsome and smiling, releasing news photographs with dignitaries and diplomats is a charming way to impress the public even when there are no visible beneficial results.

Self-styled community leaders and self-appointed ambassadors of India ultimately have to deal with same ethical boundaries that confound politicians and other personalities who throw themselves in the limelight of publicity. Having consumed the tadoori flavors and favros of Sant, it is easy to look the other way and to fall into the trap of seeing no evil, hearing no evil, and speaking no evil. Fortunately in the world of journalism and publishing, not everyone is a monkey or a blind mouse.

Source: India Monitor December 24, 1995 (Part-2)
Issue Number: 279