CBI had chargesheeted Chatwal for $9m fraud

The US-based hotelier Sant Singh Chatwal, who has been named for Padma Bhushan, was earlier chargesheeted by the CBI in a case involving allegations of a $9 million fraud connected with the State Bank of India. The BJP kicked up a row after he was named as a recipient of the prestigious award.

The US-based hotelier had allegedly defaulted on paying back the money he owed to the bank. The CBI investigated the case on the basis of a complaint by the SBI chief vigilance officer that some of its officials had allegedly conspired with the businessman in 1994 to extend loans for which there was no collateral. The agency filed the chargesheet against Mr Chatwal, who was arrested in Mumbai but got bail and left the country. The US-based hotelier was acquitted in one of the four cases in 2008 but since the director of prosecution of the CBI opposed an appeal in the matter, the case was closed, said sources.