Vanuatu’s Citizenship by Investment programme has gained global attention with Lalit Modi reportedly acquiring citizenship. The MEA is pursuing legal action against him for financial misconduct. While the programme supports the economy, concerns persist regarding misuse for illegal activities and insufficient background checks. Interest from Indians and NRIs seeking protection from legal troubles is on the rise, but scrutiny from international bodies remains a significant challenge.
Vanuatu has recently attracted international attention after reports surfaced regarding Lalit Modi, the former chairman of the Indian Premier League (IPL), acquiring its citizenship. The Indian Ministry of External Affairs (MEA) confirmed Modi’s application to surrender his Indian passport at the High Commission in London. MEA spokesperson Randhir Jaiswal noted that the government is monitoring the situation and continuing legal proceedings against Modi.
Lalit Modi has been alleged to have committed financial misconduct, including bid-rigging and money laundering, as well as violating the Foreign Exchange Management Act of 1999 (FEMA). Having left India in 2010 amid investigations related to unauthorized fund transfers, Modi’s situation raises questions about Vanuatu’s role as a refuge for individuals facing legal challenges.
Vanuatu’s Citizenship by Investment (CBI) programme, often referred to as the ‘golden passport’ scheme, enables individuals to secure citizenship through a financial contribution, starting at USD 150,000. This process is noted for its efficiency, allowing for citizenship to be granted within a month and without the necessity of visiting the country.
The Vanuatu passport offers visa-free access to 113 countries, earning a ranking of 51st on the Henley Passport Index, outperforming nations like Saudi Arabia and China. However, Vanuatu lost its EU visa-free access in 2023 due to security concerns, which raises additional questions about the long-term viability of its citizenship programme.
For Vanuatu, the CBI programme is of paramount importance as it accounts for nearly 40% of its national revenue, vital for this Pacific island nation with a population of just over 300,000 and a per capita GDP of only USD 3,515. Vanuatu reported budget surpluses during the pandemic, driven by a surge in passport demand. Furthermore, Vanuatu’s favorable tax regulations make it an appealing destination for foreign investors.
A notable trend has emerged among Indians and NRIs pursuing Vanuatu citizenship. Over the past two years, approximately 30 Indians have successfully obtained Vanuatu passports, with many seeking to utilize this opportunity to circumvent potential legal troubles in India. The programme is particularly attractive for families and serves as a preliminary step towards acquiring stronger citizenship from other nations, such as Malta.
However, concerns hinge on the potential misuse of Vanuatu’s citizenship programme by criminal syndicates, which has intensified scrutiny from global authorities. The absence of stringent background checks raises red flags about security risks, contributing to the European Union’s decision to rescind Vanuatu’s visa-free access in 2023. While the citizenship scheme is economically beneficial, it faces significant criticism for its lack of regulatory oversight.
In summary, Vanuatu has emerged as a potential refuge for individuals, such as Lalit Modi, facing legal difficulties. Its Golden Passport programme, while economically advantageous, presents numerous challenges including security concerns and potential exploitation. As Vanuatu continues to attract interest from various nationals, including Indians and NRIs, it must confront the scrutiny surrounding its citizenship policies and their implications for global security.
Original Source: english.mathrubhumi.com
