Vanuatu has gained attention with the acquisition of citizenship by Lalit Modi amid legal troubles in India. The country’s ‘golden passport’ scheme allows individuals to obtain citizenship through financial investment, contributing significantly to its economy. However, concerns regarding security and potential misuse by criminal syndicates have strained its reputation. Many Indians seek Vanuatu citizenship to avoid legal issues, though scrutiny of the program’s regulations and oversight persists.
Recently, Vanuatu has been highlighted in the news due to former Indian Premier League (IPL) chairman Lalit Modi acquiring its citizenship. The Indian Ministry of External Affairs (MEA) has verified that Modi is in the process of surrendering his Indian passport while facing ongoing legal issues concerning accusations of financial misconduct. MEA spokesperson Randhir Jaiswal confirmed that the government is actively pursuing legal proceedings against him.
Modi has been charged with financial misconduct, including money laundering and other violations of the Foreign Exchange Management Act, 1999 (FEMA). He fled India in 2010 amidst investigations related to unauthorized fund transfers. His acquisition of Vanuatu citizenship illustrates the appeal of such a scheme for individuals seeking to evade legal troubles.
Vanuatu offers a Citizenship by Investment (CBI) programme, often referred to as the ‘golden passport’ scheme, which enables individuals to obtain citizenship in exchange for a financial investment of USD 150,000. This process is noted as one of the quickest and most cost-effective globally, reportedly allowing citizenship within just one month without the necessity of visiting the country.
As of 2025, possessing a Vanuatu passport provides visa-free access to 113 countries, holding a ranking of 51st on the Henley Passport Index. Notably, countries such as Saudi Arabia and China rank lower. However, it is important to note that Vanuatu’s visa-free entry to the European Union was revoked in 2023 due to security concerns.
For Vanuatu’s economy, the CBI programme plays a critical role, contributing to approximately 40% of national revenue. Due to a low per capita GDP, the country benefits significantly from passport sales, particularly during the demand surge observed during the Covid-19 pandemic, with a reported budget surplus in 2021. Additionally, the absence of various taxes, such as personal income taxes, makes Vanuatu appealing for international investors.
A notable trend has emerged where an increasing number of Indians, including Non-Resident Indians (NRIs), seek Vanuatu citizenship. More than 30 Indians have acquired Vanuatu passports in the past two years. This option is appealing to many, particularly those residing abroad, as it extends citizenship to entire families and can serve as a preliminary step towards obtaining citizenship in countries with more robust passports.
Despite its advantages, Vanuatu’s golden passport scheme has faced criticism regarding its vulnerability to misuse by criminal elements. Concerns have been raised about inadequate background checks leading to security risks. The 2023 revocation of its visa-free entry to the EU underscores the scrutiny surrounding this programme and highlights the need for regulatory oversight to address these issues.
In conclusion, Vanuatu’s citizenship scheme presents both opportunities and challenges. While it attracts individuals like Lalit Modi seeking refuge from legal issues, its implications for global security cannot be ignored. The reliance on passport sales for national revenue further complicates the situation. The need for stringent background checks and regulatory measures is vital to mitigating potential exploitation of the programme. As it stands, Vanuatu remains a contentious yet appealing option for those pursuing second citizenship.
Original Source: english.mathrubhumi.com
