Behind Amity International’s flashy promos lie international arrest warrants against its directors Ashok and Arun Kumar Chauhan, and an extradition request for duping German banks. Ajmer Singh reports

Nurturing Talent? Amity School complex

Twenty-two sprawling campuses. 35,000 students. 130 professional degree courses. That’s the Amity universe. But what these promos fail to mention is that Amity directors Ashok Kumar Chauhan and Arun Kumar Chauhan also face an international arrest warrant. Interpol has issued a Red Corner Notice against them for alleged frauds committed in Federal Republic of Germany. The German Embassy has requested the Indian government for extradition, but the Chauhans have successfully evaded arrest/extradition for close to a decade. Ashok first went to Germany as a student, from western UP, and stayed on to trade in chemicals.

Ashok and Arun duped banking institutions not only in Germany, but elsewhere too. The Delhi High Court, on a petition filed by US-based Formossa Plastics Corporation, had restrained them from disposing of or otherwise encumbering properties standing/acquired in the names of the Ritnanad Balved Education Foundation (Ashok is the founder president of the foundation which runs Amity institutions), Ritnanad Balved Medical Foundation, Europa Foundation and his Trust Foundation.

Formossa requested the judiciary for registration of an fir against Ashok and others for cheating them. The Chauhans purchased plastic material from the company, but did not bother to clear the bills. Their total liability: Rs 95 crore. Based on the US company’s petition, the other properties on which the restraint order was issued were: 15 acres in Sector 44, Noida (Amity School complex); B-166, Sector 36; 113 acres at Panchgaon Manesar; and 5 acres in Saket.

On another petition filed by kreiss Bank, Germany, the Delhi High Court attached bank accounts worth Rs 15 crore of Ashok and his family. A Netherlands-based company, kivo, also filed a suit against the Chauhans for recovery of approximately Rs 10 crore, the bill for purchase of materials from the company.

Ashok and Arun, now residing at E-27, Defence Colony, New Delhi, are accused of intending to get hold of unlawful property and of having caused property damages to others by concealing facts.

According to the arrest warrant issued against them by the German judicial authorities, the brothers fooled credit institutions and banks. They claimed that their firms, kunstoplast and kunstochem, in Germany, were solvent enterprises and between November 1993 and March 1994, Ashok obtained discounted loans on bills of exchange from various financial institutions. They pretended that the credit slips were good bills of exchange. But the bills of exchange were not paid on due date because the drawees were insolvent.

The warrant states that the accused were able to withdraw in time — after spending nearly two decades in the country — to escape German prosecution. They camouflaged their flights abroad as business trips, and never returned. Ashok left Germany after March 26, 1994 on the pretext of negotiating with sponsors to save his akc group in Germany. On reaching Delhi, he filed a petition for bankruptcy (from June to November 1994).

Amity director Ashok Chauhan boasts of links in the BJP and the Congress. The VHP lists him as the chairperson of their European Central Committee

Alexander Frey, head, legal department, Kreiss Bank Frankfurt, told Tehelka, “Ashok and Arun have damaged kreiss Bank by $6 million (Rs 24 crore approx) and some more banks have lost between $15-20 million (Rs 60-80 crore approx).” Public Prosecutor Dominique Crede also confirmed this in an e-mail. Frey in an e-mail said the district attorney in Frankfurt had been trying to get the Chauhans extradited to Germany since 1996.

The German Embassy spokesman in New Delhi, Michael Reiffuenstuel, said, “The arrest warrants against Ashok and Arun are open and valid. There is a Red Corner Notice against them for frauds committed in Germany. In 2003, the embassy wrote to the ministry of external affairs. Oral requests were also made for their extradition, but there has been no response.”

Further, Minister of State for External Affairs E. Ahmed, in a written reply dated May 12, to an unstarred question asked by Rajya Sabha mp RK Anand, confirmed: “…valid warrants of arrest issued by German judicial authorities against Shri Ashok Kumar Chauhan and Arun Kumar Chauhan, directors of Amity International, Ghaziabad, UP, exist and the Interpol has issued Red Corner Notices Nos. 453/1990 and 459/1998 at the request of Interpol Wiesbaden… The Embassy of Federal Republic of Germany in India has requested for legal assistance in serving documents/extradition of Ashok Kumar Chauhan and Arun Kumar Chauhan.”

The minister also stated: “As per Article 6 of the extradition treaty between the Republic of India and the Federal Republic of Germany, neither of the contracting states shall be bound to extradite its own nationals. However, as per the same article, criminal prosecution may be effected in India. Therefore, the ministry of home affairs, which is the nodal ministry in such matters has been requested to proceed in accordance with law.”

The arrest warrant, an English translation of which was procured by Tehelka, lists six cases against the Chauhans. In the first case, the accused submitted to the kreiss Bank one bill of exchange of over dm 496,628.00 for discounting and for crediting the discount proceeds to kunstoplast’s account with the bank. The total damage to the bank was dm 487,832.58 (Rs 5,90,28,398).

‘I want a long-term association with you’

According to the Vishwa Hindu Parishad (VHP) website, Ashok is the chairperson of the VHP European Central Committee. The committee was formed for expansion of the VHPs activities abroad. Ashok told Tehelka, “During my stay in Europe I was associated with VHP’s activities.” When asked about his connections with the high and mighty, he said, “bjp leader Rajnath Singh is like my brother, but I have good links in both the bjp and Congress. Wards of ministers and bureaucrats study in my institutions.” When confronted with the arrest warrant against him and suits filed by American and Dutch companies, Ashok said, “All this is wrong and baseless.” Asked about the bank frauds in Germany and the Interpol Red Corner Notice against him, Ashok said, “I want to have a long-term association with you,” and left without answering the questions. During Tehelka’s first meeting with Ashok, he refused to answer the queries and said, “Mainey socha aap kisi admission ke silsile mein mujhe milne aae ho.” (I thought you have come to meet me regarding some admissions.) In response to Tehelka’s questionnaire, Arun said, “There is absolutely no request for extradition from German authorities and there is no Red Corner Notice valid in India. Neither is there any international warrant against us or any criminal proceedings initiated by any company/bank/individual in any of the courts in India or Germany. No investigation has been sought by American authorities. Complaints purportedly filed by unidentified persons, after investigations were closed.”

This bill was issued on November 18, 1993, and was due on March 5, 1994. The firm, kivo, in Volendam, was the issuer and kunstoplast was the drawee. The acceptance of the drawee as well as the endorsement for kreiss Bank were signed by Ashok. The bill was protested on March 8, 1994, due to lack of payment.

Another case was to the disadvantage of Savings Bank Naila, wherein by mutual agreement with the conspirators, the accused, Arun, requested that the bank discount a
bill of exchange of over dm 448,200.00 and credit the discount proceeds to the account of kunstochem. The bill was protested on March 11, 1994 for lack of payment. The total damage to the bank dm 438,980.53 (Rs 5,31,16,580).

In the third case, kreiss Bank was commissioned by the accused to discount a bill of over dm 532,125.00 on behalf of the firm, kunstoplast. This bill was issued on November 22, 1993 and was due on March 16, 1994. Due to lack of payment the bank protested the bill on March 18, 1994. The total damage was dm 523,477.97
(Rs 6,33,40,717).

The fourth case relates to disadvantage of Savings Bank Naila and the damage was dm 533,042.81. The acceptance of the drawee as well as the mentioned endorsements were signed by Ashok. The bill was protested due to lack of payment. The warrant states that the accused, Arun, disposed of the credit balance to transfer dm 544,000.00.
The total damage was dm 533,042.81 (Rs 6,44,98,082).

The fifth case was to the disadvantage of kreiss Bank and the damage was dm 568.619,40. The bank protested this bill on March 28, 1994, due to lack of payment. On December 27, 1993, the discount proceeds of dm 568,619.40 were deposited in the account and were used to credit the overdraft limit of dm 1 million, which was again by disposals in January and February 1994, fully exhausted. The total damage was dm 568,619.40 (Rs 6,88,02,899).

The last case also pertained to disadvantages to kreiss Bank and the damage was dm 543,881.00. On March 10, 1994, the accused submitted to kreiss Bank a bill of exchange of over dm 556,400.00 with the request for discount to credit the proceeds to kunstoplast. The total damage was dm 543,881.00 (Rs 6,58,09,601).

There are signatures of Ashok on the acceptance as well as endorsement of the drawee to the kreiss Bank. Due to lack of payment the bill was protested on June 13, 1994.