Vanuatu Revokes Lalit Modi’s Citizenship Amid Rising Scrutiny of Investment Programs

Vanuatu has revoked Lalit Modi’s citizenship amid financial misdeeds allegations. Prime Minister Jotham Napat revealed that Interpol previously rejected related alert requests. The tightening of citizenship program scrutiny follows Nirav Modi’s application rejection. This shift reflects Vanuatu’s commitment to ensuring legitimate citizenship acquisitions and addressing global security risks.

Vanuatu has rescinded the citizenship granted to former Indian Premier League chairman Lalit Modi, who faces allegations of financial misconduct in India. Prime Minister Jotham Napat stated that while initial background checks revealed no criminal convictions, recent information indicated that Interpol had rejected requests for an alert notice against Mr. Modi due to insufficient judicial evidence, which would have automatically barred his citizenship application.

Lalit Modi applied to surrender his Indian passport at the High Commission of India in London, asserting his acquisition of Vanuatu citizenship. Had his citizenship been confirmed, India would have had to pursue extradition processes before he could be tried for legal violations in India.

Prior to Modi’s case, Vanuatu also denied diamond jeweller Nirav Modi’s citizenship application. Vanuatu grants citizenship through its Citizenship by Investment (CBI) program, requiring a non-refundable investment. The minimum required for a single applicant is $155,000, making it one of the more accessible citizenship routes available.

Nirav Modi aimed to acquire Vanuatu citizenship approximately three months preceding the revelation of a significant banking fraud involving ₹13,600 crore at Punjab National Bank. According to reports, he transferred $195,000 to an authorized agent for the Vanuatu CBI program’s application fee; however, adverse findings from the Government Financial Intelligence Unit led to the denial of his application.

The scrutiny of Vanuatu’s citizenship program has increased significantly over the last four years, as stated by PM Napat. Enhanced due diligence measures, which now involve multi-agency checks including Interpol, have resulted in a higher failure rate for applications. Concerns have emerged regarding citizenship schemes potentially facilitating money laundering and enabling offenders to evade justice in their home nations.

In December, the European Union revoked a visa exemption for Vanuatu due to security risks associated with its citizenship scheme. This move stems from apprehensions that investor citizenship programs pose migration and security challenges. Mehul Choksi, Nirav Modi’s uncle and co-accused in the fraud case, obtained citizenship of Antigua and Barbuda through a similar investment scheme and has since faced difficulties in extradition efforts.

Lalit Modi is under investigation for foreign exchange violations and a controversial ₹425 crore television rights contract associated with the IPL 2009. Following minimal cooperation with tax authorities in Mumbai, he fled to the United Kingdom in 2010. His tenure at the IPL ended with serious allegations of misconduct, leading to a lifetime ban imposed by the Board of Control for Cricket in India in 2013. While he maintains his innocence in interviews from London, the scrutiny surrounding his actions continues to unfold.

In summary, Vanuatu’s cancellation of Lalit Modi’s citizenship underscores the nation’s initiative to enforce stricter regulations within its Citizenship by Investment program. The rise in diligence reflects concerns over the potential misuse of citizenship for criminal activities. Furthermore, the past rejection of Nirav Modi’s application illustrates a growing trend of heightened scrutiny in response to international legal obligations and security concerns.

Original Source: indianexpress.com