IPL founder Lalit Modi to give up Indian citizenship!
According to the Ministry of External Affairs (MEA) spokesperson Randhir Jaiswal, Lalit Modi, founder of the Indian Premier League (IPL), has applied for the surrender of his Indian passport at the Indian High Commission located in London. He elaborated that, as of now, Modi's request is being verified in accordance with standard operating procedures and was under consideration as of last week’s Friday presser.
This update follows news of Modi reportedly obtaining citizenship from Vanuatu, an island country in the South Pacific Ocean famous for its Citizenship by Investment program. The Indian government has spent over a decade pursuing legal action against Modi, leading to accusations of tax evasion and severe financial crimes, and constantly seeks his extradition. Modi, however, appears unfazed by such attempts and continues to live in London.
Lawsuits in India Move Ahead
Jaiswal stated, “It has come to our notice that Lalit Modi has requested to surrender his passport at the Indian High Commission in London. It shall be looked into as per the existing rules and procedures. Further, we have also been informed that he has acquired citizenship of Vanuatu. Further, we will undertake steps against him as required by law.”
While it remains unsubstantiated how Modi came to possess citizenship of Vanuatu, the allegations remain puzzling for many as the country is known as a tax feminine. The Island nation's “Golden Passport,” which is offered to foreign nationals willing to make large economic contributions, is known to be one of the easiest in the world to obtain.
Vanuatu’s CBI program, for which the fee ranges from $135,500 to $155,500 (approximately $1,18 crores to $1.35 crores) permits interested persons to acquire citizenship within 30 to 60 days of receiving the application. The program, as per a BBC report of 2019, constitutes almost 30 % of the national income of the country.
Vanuatu is currently in possession of 113 countries who have allowed visa free access or a visa upon arrival option, giving them rank number fifty one on the Henley Passport Index. For comparison, India ranks eighty on this index.
Concerns of Vanuatu passport misuse
Vanuatu's classification as a tax haven puts them in the category of zero tax jurisdictions whithout income tax, capital gains tax, inheritance tax or estate tax. Even though the country does apply indirect taxes like value added tax and property transaction tax, these rates are significantly lower than those in neighbouring countries. Furthermore, Vanuatu has the least amount of financial reporting requirements making it more appealing to those wishing to relocate seeking tax advantageous situations.
Vanuatu’s CBI programme is believed to encourage money laundering and provide access to the European Union and United Kingdom through visa free travel, which caused the 2022 23 EU visa suspension period. While Modi's Vanuatu citizenship still requires confirmation, the fact that he has begun the process of surrendering his Indian passport means he is engaged in a significant legal battle with the Indian government.