Lalit Modi: Why Vanuatu Citizenship?

Aakhir Tak – In Shorts

Fugitive Lalit Modi has acquired citizenship of Vanuatu.
Lalit Modi faces charges of money laundering and tax evasion.
Vanuatu’s ‘Golden Passport’ program is quite popular.
Visa-free entry to over 120 countries is available with a Vanuatu passport.
The Indian government is trying to extradite Lalit Modi.

Aakhir Tak – In Depth

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Former IPL (Indian Premier League) chairperson and fugitive Lalit Modi is in the news again. This time, it’s not due to his personal life but for having acquired the citizenship of Vanuatu, a tiny island nation in the Pacific Ocean. The Ministry of External Affairs (MEA) confirmed this at its weekly media briefing on Friday. Lalit Modi’s acquisition of Vanuatu citizenship raises several questions.

MEA spokesperson Randhir Jaiswal said that Modi, who is facing charges of money laundering and tax evasion, has applied at the High Commission in London to surrender his Indian passport. Lalit Modi faces numerous allegations of financial irregularities.

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Jaiswal said, “Lalit Modi has made an application for surrender of his passport at the High Commission of India in London. The same will be examined in light of extant rules and procedures. We are also given to understand that he has acquired citizenship of Vanuatu. We continue to pursue the case against him as required under law.” The Indian government is constantly trying to extradite Lalit Modi.

This new development comes 15 years after Modi, who came into the limelight for his role in starting the Indian Premier League (IPL), fled to the UK. India’s extradition request has not made much progress. Now, with Modi acquiring citizenship of Vanuatu, whose population is less than the Union Territory of Pondicherry, the case has taken a new turn.

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Why Did Lalit Modi Choose Vanuatu?

Vanuatu, with a population of just over 300,000, has a lucrative ‘Golden Passport’ program through which wealthy individuals can purchase its citizenship and obtain a passport by paying just USD 150,000 (Rs 1.3 crore). What makes it even more attractive is that very few documents are required, and they can be provided online. The process takes only one month and one can obtain a passport without even setting foot in the country. Many people are questioning Lalit Modi’s decision.

Marketed as one of the fastest, cheapest, and most lax ‘Golden Passport’ programs, passport sales account for nearly 40% of Vanuatu’s revenue, one of the poorest countries in the world. In fact, due to high demand for its citizenship, the government reported a budget surplus in 2021, at a time when other countries were reeling under the impact of the Covid pandemic. Obtaining Vanuatu citizenship is relatively easy.

One of the biggest advantages of a Vanuatu passport is that it allows visa-free entry to over 120 countries, including the UK and European countries, according to a report in The Guardian. Vanuatu is also a tax haven, with no income, corporate, or wealth tax. Tax laws are quite simple in Vanuatu.

Reports show that the island nation is becoming a popular destination for Indians and NRIs. At least 30 Indians (including NRIs) have acquired Vanuatu citizenship in the past 2 years. The maximum number of passports were granted to Chinese nationals. Vanuatu is also becoming popular among Indians.

However, the ‘Golden Passport’ program has a questionable past, with investigations revealing that it has been exploited by global criminal syndicates because it provides back-door access to the EU and the UK. An investigation by The Guardian found that most of the citizenship applicants were involved in a complex web of offshore businesses. The process to acquire Vanuatu passport is fairly simple.

Aakhir Tak – Key Takeaways to Remember

Lalit Modi acquired Vanuatu citizenship, bringing him into the spotlight again.
Lalit Modi is accused of money laundering and tax evasion, which led him to flee India.
Vanuatu’s ‘Golden Passport’ program provides an easy way for wealthy individuals to obtain citizenship.
Visa-free entry to over 120 countries is available in Vanuatu, which makes it more attractive.
The Indian government is trying to extradite Lalit Modi, but Vanuatu citizenship may further complicate the matter.