TRUMP GROUP’S INDIANORIGIN PARTNER SEEKS TAX BREAK

WASHINGTON : A Mississippi hotel chain owned by an Indian-origin family, Chawla Hotels, is facing media scrutiny for seeking tax breaks in an upcoming project in partnership with the Trump Organization.

Chawla Hotels, owned by brothers Dinesh Chawla and Suresh Chawla, has applied for tax rebates worth $6 million — roughly a third of an estimated $20 million that the Cleveland, Mississippi hotel is likely to cost, according to news reports.

Dinesh Chawla confirmed to The New York Times and AP that the company sought tax rebates under Mississippi’s tourism promotion scheme for the hotel. He said Trump Organization played no role in the application.

NYT, citing critics and legal experts, wrote: “If the state approves the tax rebate for the Chawlas, it could indirectly, but personally, benefit the president, who owns the family business through a trust, an arrangement that raises some constitutional concerns”.

The hotel is among the first projects selected for partnership with the Trump Organization’s newly launched Scion brand for four-star hotels.