Lalit Modi, the former chairman of the Board of Control for Cricket in India (BCCI) and the founder of the Indian Premier League (IPL), has officially acquired citizenship of Vanuatu, a small island nation in the South Pacific Ocean. He has applied to surrender his Indian passport at the Indian High Commission in London. This move raises several legal and financial implications, especially for India, which has been attempting to bring him back to face charges.
Why Did Lalit Modi Choose Vanuatu?
Vanuatu is widely known as a tax haven and a preferred destination for individuals seeking financial and legal protection. Here’s why it is an attractive choice:
1. No Income Tax
Vanuatu does not impose personal income tax, corporate tax, or capital gains tax. This makes it a highly favorable destination for wealthy individuals who want to safeguard their assets.
2. Citizenship by Investment (CBI) Program
Vanuatu offers one of the world’s fastest Citizenship by Investment (CBI) programs. Under this program:
- An individual can obtain Vanuatu citizenship for around ₹1 crore ($130,000).
- A family can get citizenship for ₹1.5 crore ($190,000).
- Citizenship is granted within just seven weeks, making it one of the fastest naturalization programs.
3. No Residency Requirement
Unlike other countries offering investment-based citizenship, Vanuatu does not require applicants to reside in the country before or after obtaining citizenship. This makes it a great option for global citizens who prefer to live elsewhere.
4. Visa-Free Travel to 89 Countries
A Vanuatu passport provides visa-free or visa-on-arrival access to 89 countries, including the UK, Singapore, and Schengen Zone nations. However, it does not grant easy entry to the US or Australia.
5. Dual Citizenship Allowed
Vanuatu allows dual citizenship, which means individuals can retain their original nationality while holding a Vanuatu passport. However, since India does not permit dual citizenship, Lalit Modi had to surrender his Indian passport.
What This Means for India’s Efforts to Extradite Modi
Lalit Modi has been living in the United Kingdom since 2010, after being accused of financial irregularities related to the IPL. His decision to acquire Vanuatu citizenship complicates India’s efforts to extradite him for trial. Here’s why:
- No Extradition Treaty: India does not have an extradition treaty with Vanuatu, making it difficult for Indian authorities to bring him back.
- Legal Protections: As a Vanuatu citizen, Modi can benefit from its favorable legal system, which may not cooperate with international legal requests.
- Political Neutrality: Vanuatu, being a small and politically neutral country, is unlikely to act against its high-net-worth citizens.
Is Vanuatu Becoming a Global Safe Haven for the Wealthy?
Over the past few years, Vanuatu has gained popularity among the ultra-rich, crypto investors, and individuals facing legal troubles in their home countries. Some key reasons include:
- Fast and Discreet Citizenship Process – Unlike many Western countries, Vanuatu does not demand extensive background checks.
- Financial Privacy – Since it does not impose income tax or capital gains tax, it attracts people looking to protect their wealth.
- Ease of Doing Business – The country offers a business-friendly environment, making it an attractive destination for offshore companies.
Final Thoughts
Lalit Modi’s move to Vanuatu highlights how the world’s wealthy and controversial figures are leveraging tax havens and citizenship-by-investment programs to secure legal and financial advantages. For India, this development presents a new legal challenge in bringing back high-profile fugitives.