Vanuatu has canceled Lalit Modi’s passport due to concerns he sought citizenship to avoid extradition on financial crimes. PM Jotham Napat noted enhanced scrutiny in the citizenship program, rejecting applications from individuals like Nirav Modi, amid international pressure against misuse of citizenship-for-investment schemes. These developments reflect Vanuatu’s commitment to preventing its passport from facilitating criminal activities.

Vanuatu has rescinded former Indian Premier League (IPL) chairman Lalit Modi’s passport due to concerns regarding his intentions tied to alleged financial irregularities in India. Prime Minister Jotham Napat stated that despite initial background checks showing no criminal convictions, Interpol had previously rejected requests for an alert from Indian authorities due to insufficient judicial evidence. It was determined that Mr. Modi’s motives were questionable, suggesting intentions to evade extradition.

Lalit Modi recently applied to surrender his Indian passport at the High Commission of India in London after obtaining Vanuatu citizenship. Had his application been successful, India would have been required to pursue extradition processes to prosecute him legally. Prior to this, Vanuatu had also rejected an application from diamond jeweller Nirav Modi for similar reasons.

Vanuatu’s Citizenship by Investment (CBI) program requires substantial financial contributions, including a donation of approximately $155,000 for individual applicants, making it an attractive option for many. Nirav Modi attempted to obtain citizenship in late 2017 before the emergence of a banking fraud scandal involving Punjab National Bank. A payment of $195,000 was submitted to facilitate his application, but adverse findings during a financial intelligence probe led to its rejection.

The Vanuatu government, under the direction of Prime Minister Napat, has intensified its due diligence for the CBI program to mitigate risks associated with citizenship-for-investment schemes. Enhanced scrutiny measures now involve comprehensive checks, including triple-agency verifications facilitated by the Vanuatu Financial Intelligence Unit. Concerns over the potential misuse of these schemes to aid in money laundering have prompted this shift.

Recent measures have garnered international attention; the European Union retracted a visa-free travel agreement with Vanuatu, citing security and migration risks associated with its citizenship program. Additionally, money laundering watchdogs, such as the Financial Action Task Force (FATF), have indicated that such citizenship programs may enable criminal activities and disguise identities through opaque corporate structures.

Lalit Modi faces multiple allegations, including forex violations and a controversial TV rights deal tied to the IPL. After only one session with Indian tax authorities, he fled to the UK in 2010 amid accusations of misconduct, financial improprieties, and subsequent bans by the Board of Control for Cricket in India (BCCI). Mr. Modi has consistently maintained his innocence regarding these allegations.

In conclusion, Vanuatu’s recent actions regarding the citizenship applications of Lalit Modi and Nirav Modi underscore the nation’s enhanced scrutiny of its citizenship-by-investment program. As concerns over potential misuse and international repercussions mount, the government has implemented rigorous checks to ensure legitimate applicants and deter criminal exploitation. The ongoing investigations against Lalit Modi highlight the complexities surrounding such international citizenship schemes.

Original Source: indianexpress.com

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