The millionaire was arrested for drug possession in 2013 and given rehab

The dogs suffered minor burns and singed fur in the incident

Chatwal reportedly said he's on anti-depressants and his home has fleas

Witnesses say he also talked about the 'CIA' and a 'compromised vehicle'

He was filmed apparently babbling incoherently after the alleged attack

Chatwal, 44, 'attacked the dogs Friday outside his NY home' witnesses said

Vikram Chatwal, a New York hotelier, socialite and friend of Lindsay Lohan, has been accused of setting a stranger's two dogs on fire outside his Manhattan home.

Chatwal, 44, whose family own the New York hotels Night, Time and Dream, reportedly used a lighter and aerosol can to attack the pups at 1.30pm Friday.

'It was like a fire-breathing dragon, shooting out flames two-to-three feet long,' witness Roxanne Robles told Page Six. 'This isn't OK. You can't walk the streets lighting dogs on fire and think your life can go on as usual.'

Party guy: Vikram Chatwal, long-time friend of Lindsay Lohan (both pictured in one of his hotels), is accused of attacking two dogs with an aerosol can and a lighter Friday

'Babbling': Chatwal (pictured with a third, unharmed dog in April) reportedly said the dogs had to 'die' because of their 'fleas,' and babbled about the 'CIA' and a 'compromised vehicle'

Chatwal, screamed 'They must die!' as he attacked the animals outside his SoHo home at 21 Wooster Street, witnesses said.

The multi-millionaire, who has been friends with Lohan since 2011 and was arrested for drug possession in 2013, reportedly 'babbled' that the dogs must be killed because of their 'fleas.'

Bystanders, including Robles, said they managed to separate Chatwal from the terrified animals, who suffered minor burns.

Video obtained by TMZ shows Chatwal talking to witnesses after the alleged attack, sounding confused.

He apologizes repeatedly, and invites the dog owner into his home to show her his 'water collection.'

'It's dripping with water,' he promises.

Chatwal also appears to comment about needing to see his doctor, and rambles incoherently, apparently saying 'psyche, psyche, psyche' and 'I'll eat s**t.'

At one point he shouts at the crowd that he is 'not fine' and 'we're not all fine.' He then amends that to 'I'm fine.'

A text note on the video adds that Chatwal 'started yelling things like "the vehicle is compromised" and "CIA," talking to himself and going crazy.'

Those moments are not seen in the video.

'Fleas': A neighborhood worker later said that Chatwal claims his SoHo home (pictured), where the incident took place, is infested with fleas, and that he was on anti-depressants

One man who works in the neighborhood told Page Six he spoke to Chatwal after the alleged attack, and the dishevelled hotelier told him he was on medication.

'The guy was muttering, he was telling me he was on anti-depressants,' said the man, who was not named.

'He said he has ticks and fleas in his apartment and he blames the dogs.'

Chatwal was arrested in April 2013 at Fort Lauderdale airport after trying to get on a plane while carrying heroin, cocaine, pot and prescription pills, TMZ reported at the time.

He was sentenced to 12 months of in-patient rehab. He is to be the subject of a reality TV show next year, Page Six reported.

Police are investigating the incident.