Vanuatu revoked Lalit Modi’s citizenship amid financial misconduct allegations, citing intent to avoid extradition. Previously, Nirav Modi’s application was also rejected due to adverse findings. This reflects Vanuatu’s tightened scrutiny of its Citizenship by Investment program, aimed at preventing misuse for criminal activities and addressing international concerns over security risks.
Vanuatu has revoked the citizenship granted to Lalit Modi, former IPL chairman, due to his alleged financial misconduct in India. Prime Minister Jotham Napat stated that while initial background checks showed no criminal record, alerts from Interpol regarding Indian authorities’ requests were rejected due to insufficient evidence. The intent behind Modi’s application was perceived as avoiding extradition, which led to Vanuatu’s decision to cancel his passport.
Prior to Modi, Vanuatu also denied citizenship to Nirav Modi, a jeweler implicated in a major banking fraud. Vanuatu’s Citizenship by Investment (CBI) program requires applicants to make a non-refundable investment of approximately $155,000. Nirav Modi attempted to acquire citizenship shortly before his involvement in the Punjab National Bank scam became public, making a payment of $195,000 to an authorized agent, which was later rejected due to adverse findings by the Financial Intelligence Unit.
Vanuatu has enforced stricter due diligence on its citizenship applications. The Prime Minister noted that the government has strengthened background checks, and applications that fail scrutiny are increasingly common. Concerns have emerged that citizenship for investment programs may facilitate money laundering and help criminals evade justice, leading to the European Union revoking Vanuatu’s visa-free access.
The Financial Action Task Force (FATF) has raised alarms over the potential for misuse of investor citizenship schemes, warning that they could enable criminals to operate undetected. Lalit Modi faces accusations related to substantial financial irregularities, including violations of foreign exchange laws and misconduct within IPL governance, ultimately escaping to the UK after a brief inquiry in India.
Lalit Modi’s legal troubles stem from an investigation into forex violations and mismanagement of funds connected to a costly TV rights deal for IPL 2009. Following his allegations, he was suspended and later banned for life from the Board of Control for Cricket in India (BCCI) due to misconduct with new franchise bids. Despite all allegations, Modi asserts his innocence in interviews from London.
Vanuatu’s actions concerning Lalit and Nirav Modi illustrate the heightened scrutiny within the Citizenship by Investment program, prompted by concerns over money laundering and evasion of justice. With more rigorous checks being implemented, the risks associated with citizenship by investment schemes are increasingly recognized by international bodies, highlighting the importance of responsible scrutiny of applicants in protecting national integrity.
Original Source: indianexpress.com
