Why ex-IPL boss and fugitive Lalit Modi has acquired Vanuatu citizenship

Former IPL chairperson and fugitive Lalit Modi is in the news again. This time it's not due to his relationships, but for having acquired the citizenship of Vanuatu, a tiny island nation in the Pacific. This was confirmed by the Ministry of External Affairs (MEA) at its weekly media briefing on Friday.

MEA spokesperson Randhir Jaiswal said Modi, who is facing charges of money laundering and tax evasion, has applied at the High Commission in London to surrender his Indian passport.

"Lalit Modi has made an application for surrender of his passport at the High Commission of India in London. The same will be examined in light of extant rules and procedures. We are also given to understand that he has acquired citizenship of Vanuatu. We continue to pursue the case against him as required under law," Jaiswal said.

The fresh development comes 15 years after Modi, who shot to the limelight for his role in starting the behemoth that is known as the Indian Premier League (IPL), fled to the UK. India's request for extradition has not made much headway. Now, with Modi acquiring the citizenship of Vanuatu, whose population is less than the Union Territory Pondicherry, the case has a fresh twist.

WHY LALIT MODI HAS CHOSEN VANUATU?

Vanuatu, which has a population of just over 3 lakh, has a lucrative golden passport program through which wealthy individuals can purchase its citizenship and obtain a passport by just paying USD 150,000 (Rs 1.3 crore). What makes it more attractive is the fact that very few documents are required, and they can be provided online. The process takes just one month and one can get a passport without even setting foot in the country.

Marketed as one of the fastest, cheapest and most lax golden passport programs, passport sales account for nearly 40% of the revenue of Vanuatu, one of the poorest countries in the world. In fact, due to high demand for its citizenship, the government reported a budget surplus in 2021 at a time when other countries were reeling under the impact of the Covid pandemic.

One of the biggest advantages of a Vanuatu passport is that it allows visa-free entry to over 120 countries, including the UK and European Nations, according to a report in The Guardian. Vanuatu is also a tax haven, with no income, corporate or wealth tax.

Reports reveal that the island nation is becoming a go-to destination for Indians and NRIs. At least 30 Indians (including NRIs) have become citizens of Vanuatu in the past 2 years. The maximum passports were granted to Chinese nationals.

However, the golden passport program has a chequered past, with investigations revealing that it has been exploited by global criminal syndicates as it provides back-door access to the EU and UK. An investigation by The Guardian has found that most of the citizenship applicants were implicated in a complex web of offshore businesses.