Vanuatu is increasingly being perceived as a potential safe haven for individuals facing legal issues, such as Lalit Modi. The nation’s golden passport scheme offers citizenship through financial investment, significantly benefiting its economy yet raising security concerns about misuse. The surge in applications, especially from Indians, reflects individuals’ desire to circumvent legal troubles, while highlighting regulatory weaknesses in the citizenship process.
Vanuatu has garnered attention recently due to reports confirming that Lalit Modi, the former chairman of the Indian Premier League (IPL), has secured citizenship there. The Indian Ministry of External Affairs (MEA) acknowledged that Modi has applied to relinquish his Indian passport, with spokesperson Randhir Jaiswal stating that legal proceedings against him are ongoing. “We continue to pursue the case against him as required under law,” he noted.
Modi has faced various allegations, including financial misconduct, money laundering, and violations of the Foreign Exchange Management Act, leading him to leave India in 2010. Vanuatu’s Citizenship by Investment (CBI) programme, often referred to as the ‘golden passport’ scheme, permits individuals to gain citizenship through a financial investment, specifically a contribution of USD 150,000, without needing to visit the country.
This passport allows visa-free access to 113 countries and ranks as the 51st strongest according to the Henley Passport Index. However, Vanuatu’s access to the European Union was revoked in 2023 due to security concerns. Economically, the CBI scheme is crucial for Vanuatu, accounting for nearly 40% of national revenue, as the nation struggles with a low GDP per capita of USD 3,515.2, positioning it among the poorest globally.
During the COVID-19 pandemic, demand for Vanuatu passports surged, resulting in a budget surplus in 2021. Vanuatu’s appeal is also heightened by its tax policies, which do not include personal income or corporate taxes, relying instead on lower indirect taxes. This makes it an attractive investment destination and an offshore financial hub.
There has been an increase in applications for Vanuatu citizenship among Indians, including Non-Resident Indians (NRIs), with at least 30 having obtained Vanuatu passports in the past two years. Many view this citizenship as a proactive means to mitigate legal challenges in India, especially beneficial for those living abroad. Some individuals utilize Vanuatu as an intermediary step towards citizenship in nations with more robust passports.
Despite these advantages, concerns have arisen regarding potential exploitation of the golden passport scheme, particularly with criminal organizations reportedly using it as a route to Europe. The European Union’s revocation of visa-free access underscores these security concerns. Furthermore, the lack of stringent background checks within the programme has raised additional questions about regulatory oversight, prompting ongoing criticism and scrutiny.
Overall, Vanuatu’s golden passport scheme presents significant benefits, particularly for individuals like Lalit Modi seeking refuge from legal challenges. Its economic importance to Vanuatu is evident, yet growing concerns about security risks associated with the programme highlight the need for more stringent regulatory measures. As citizenship applications rise, particularly among Indians, the implications of this trend warrant careful observation.
Original Source: english.mathrubhumi.com
