Vanuatu Revokes Lalit Modi’s Citizenship Amid Financial Allegations
Vanuatu has revoked Lalit Modi’s passport due to concerns over intended evasion of extradition amidst financial misconduct allegations. Previously, Nirav Modi’s citizenship application was also denied due to adverse findings from the Financial Intelligence Unit. Vanuatu has tightened scrutiny of its citizenship program, citing risks associated with investor citizenship schemes.
Recently, Vanuatu rescinded the passport granted to Lalit Modi, the former Indian Premier League chairman, who is embroiled in allegations of financial irregularities in India. Prime Minister Jotham Napat stated that while standard background checks yielded no criminal convictions, Interpol had twice rejected Indian requests for an alert concerning Mr. Modi due to insufficient judicial evidence. Consequently, it became evident that his application for citizenship was intended to evade extradition processes.
Lalit Modi’s recent application to relinquish his Indian passport in London was submitted under the claim of having acquired Vanuatu citizenship. Should his citizenship have been approved, India would have faced hurdles in executing his extradition, particularly in relation to ongoing legal matters. Prior to Modi’s application, Vanuatu also denied citizenship to Nirav Modi, a diamond jeweler implicated in a substantial banking fraud case.
Vanuatu’s Citizenship by Investment (CBI) program requires significant financial contributions, including non-refundable donations. Currently, single applicants must invest $155,000 (approximately ₹1.3 crore), marking it as one of the more accessible citizenship options. Nirav Modi attempted to acquire citizenship through this program just months before the fraudulent banking activity in Punjab National Bank became public.
Evidence shows that Nirav Modi transferred $195,000 from his account to an agent authorized by Vanuatu’s government to facilitate his citizenship application. However, his request was not approved due to adverse findings from the country’s Financial Intelligence Unit (FIU). PM Napat’s recent remarks indicated that the government has enhanced the due diligence for the CBI program significantly in recent years.
This tightening of scrutiny over citizenship applications addresses concerns that citizenship programs may enable criminals to launder money and evade justice. The European Union has taken actions against Vanuatu for its investor citizenship scheme, citing enhanced security and migration risks. Additionally, the Financial Action Task Force has expressed concerns regarding the global mobility afforded to criminals via such citizenship by investment schemes.
Lalit Modi faces allegations involving substantial financial misconduct, including forex violations and irregularities in a TV rights deal valued at ₹425 crores associated with IPL 2009. After experiencing only one session of questioning from authorities in India, he relocated to the United Kingdom in May 2010. Modi was subsequently banned for life by the Board of Control for Cricket in India following the completion of an investigation into his financial dealings.
In summary, Vanuatu’s actions reflect its commitment to reinforcing the integrity of its Citizenship by Investment program in response to previous cases involving notable individuals accused of financial crimes. The enhanced scrutiny aims to prevent misuse of the program while balancing the need for legitimate investment opportunities. As the global community increasingly scrutinizes such citizenship schemes, the implications for those seeking refuge from legal repercussions are significant.
Original Source: indianexpress.com
