Lalit Modi seeks to surrender Indian citizenship, secures Vanuatu passport

Lalit Modi, founder of the Indian Premier League (IPL), has submitted an application to surrender his Indian passport at the Indian High Commission in London, according to Ministry of External Affairs (MEA) spokesperson Randhir Jaiswal.

 

Speaking at the weekly media briefing on Friday, Jaiswal confirmed that Modi's request is under review in accordance with existing regulations and procedures. 

The development comes amid reports that Modi has acquired the citizenship of Vanuatu, a small island nation in the South Pacific known for its Citizenship by Investment (CBI) programme. India has been pursuing legal proceedings against Modi for over a decade, seeking his extradition on charges of tax evasion and financial irregularities. Despite these efforts, he has continued to reside in London.

 

India continues legal pursuit

 

"It is learnt that Lalit Modi has made an application for the 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 stated. 

While it has not been officially confirmed how Modi obtained Vanuatu citizenship, his reported association with the country raises questions due to its reputation as a tax haven. The island nation offers one of the world's most accessible "golden passport" schemes, allowing foreign nationals to purchase citizenship through significant financial contributions to its economy.

 

Vanuatu's citizenship by investment programme

 

Vanuatu’s CBI programme, which costs between $135,500 and $155,500 (approximately Rs 1.18 crore to Rs 1.35 crore), enables investors to obtain citizenship within 30 to 60 days of application submission. The initiative accounts for nearly 30 per cent of the country's national revenue, according to a 2019 BBC report. 

Vanuatu’s passport offers visa-free or visa-on-arrival access to 113 countries, ranking 51st globally on the Henley Passport Index. By comparison, India ranks 80th on the index.

 

Concerns over misuse of Vanuatu passport

 

Vanuatu is classified as a tax haven, offering a zero-tax jurisdiction that exempts residents from personal income tax, capital gains tax, inheritance tax, and wealth tax. While the country does levy indirect taxes such as value-added tax (VAT) and property transaction taxes, the rates are considerably lower than in neighbouring nations. Additionally, Vanuatu has minimal financial reporting requirements, making it an attractive destination for individuals seeking tax advantages. 

The country's tax policies, coupled with its relaxed regulatory framework, has led to concerns about potential misuse of its citizenship scheme. Experts have warned that Vanuatu’s CBI programme could facilitate money laundering and provide an entry point to the European Union and the United Kingdom through its visa-free travel privileges, which had led to a temporary suspension of its visa-free entry into the EU between 2022-23. 

Although Modi’s Vanuatu citizenship is yet to be officially confirmed, the surrender of his Indian passport marks a significant step in his legal battle with Indian authorities.