Alleged irregularities in the Indian government have surfaced following revelations linked to the Cyprus Investment Program over the past week.
A former official from the Indian executive branch, prompted by recent disclosures of over 60 naturalized Indians in Cyprus, has written a letter to the current official in the federal ministry, urging criminal prosecution against compatriots who acquired Cypriot citizenship while retaining their Indian citizenship, a practice deemed illegal in the South Asian nation.
The revelations were made by the Indian Express last Thursday concerning entrepreneurs who obtained Cypriot citizenship under questionable circumstances.
The newspaper participated in a consortium of investigative journalists working on the “Cyprus Confidential” investigation, analyzing 3.6 million files from Cypriot financial service providers.
Former Indian government secretary E. A. S. Sarma has written a letter to the Minister of Home Affairs, Ajay Kumar Bhalla, calling for necessary actions to investigate and promptly prosecute those naturalized Indians suspected of wrongdoing.
He cites Article 9 of the Indian Constitution, which prohibits Indian citizens from holding dual citizenship.
Additionally, Sarma calls on the minister to ensure information is provided by the Republic of Cyprus to assist Indian authorities in their investigations into the 66 citizens who participated in Cyprus’s golden passport program and are alleged to have committed financial offenses.
The Republic of Cyprus has conveyed messages of exceptional bilateral relations with India on various occasions, emphasizing the significance of collaboration with such an influential South Asian country.
In his letter to the Indian Home Affairs Minister, Sarma notes:
“The Indian Express recently conducted an extensive investigation into a scandal involving a group of Indian citizens who obtained ‘Golden Passports’ from the Cyprus government around 2017-18, making investments through a special scheme offered by the state. Many of their investments seem to involve illegal wealth accumulated from their businesses in India, exploiting gaps in the regulatory framework and inadequate regulatory oversight.”
He adds that some of the 66 who obtained “golden passports” also hold valid Indian passports simultaneously, a practice prohibited by the constitution of India.
He refers to a point in the Indian Express report revealing details about an Indian couple using both Cypriot and Indian travel documents.
Sarma suggests seeking cooperation from Cypriot authorities:
“It is necessary for the Indian government and its investigative agencies, particularly the Law Enforcement Agency and the Central Bureau of Investigation (CBI), to approach the government of Cyprus and obtain access to the names of Indian citizens and persons of Indian origin who have made investments to acquire ‘Golden Passports,’ gather details of their shell companies and the funds hidden in them, financial transactions they are involved in, which could lead to tax evasion, market manipulation, and illegal possession of assets in India, and take appropriate actions under relevant laws.”
He concludes his letter by stating:
“According to Article 9 of the Indian Constitution and other relevant nationality laws, I request the Ministry of Home Affairs to identify holders of Indian passports and their collaborators involved in this scandal and initiate prosecution against them. An investigation should also be conducted into whether certain individuals in India and regulatory authorities collaborated with them. I hope the Ministry of Home Affairs will coordinate action with other ministries and authorities to bring the culprits to justice without delay.”
What the Indian Express Reveals About Naturalized Cypriots
The investigation by the Indian Express has brought to light cases of Indians who were naturalized as Cypriots, shedding light on instances that were not widely known until now.
According to the report, their naturalizations are surrounded by peculiar circumstances, exposing Cyprus, which granted them citizenship, to potential risks.
Illustrative of this is the case of Pankaj Oswal and his wife Radhika.
The couple had established a company (6/2017-Cyprol LTD) with the aim of developing oil refining facilities in Cyprus but closed it down after acquiring Cypriot citizenship in 2018.
This information emerges from documents of the Cypriot financial services company ConnectedSky. In the spring of 2016, the couple was prohibited from leaving Australia, where they were conducting business, due to tax obligations.
Indian Express also mentions other cases of naturalized Indians in Cyprus, including Surinder Hiranandani (a real estate tycoon), Anubhav Aggarwal (the Nicolatos Committee recommends citizenship revocation), Nesamanimaran Muthu, Virkaran Awasthy (who, along with his wife, faced Indian authorities for fraud), and the Awasthy and Vinod Adani siblings.
According to last week’s revelations, Nesamanimaran Muthu, known as MGM Maran, was scrutinized by Indian authorities.
The competent authority of the country had notified the following about Muthu:
“In order to avoid the implications of Indian laws, MGM Maran renounced his Indian citizenship. Additionally, it was found that MGM Maran began transferring his wealth from India to destinations abroad…to keep it beyond the reach of Indian law enforcement.”
The Nicolatos Committee’s Investigation into Aggarwal
The revelations in India also focus on the case of naturalized individual Anubhav Aggarwal.
He was investigated for fraud in India, faced arrest in Dubai in August 2020, and eventually had his assets seized by his home country. Cypriot authorities have only dealt with this specific case in the past.
The investigative committee for exceptional naturalizations, headed by former Supreme Court President Myron Nicolatos, had highlighted Aggarwal’s case and recommended the revocation of his Cypriot passport.
Regarding the committee’s observations on Aggarwal, who was naturalized as a Cypriot in 2016, it is noted that during the submission of his application, he failed to disclose his relationship with the company ARK Imports Private Limited, that he was under investigation by Indian authorities for the NSEL scam involving a scandal in spot exchanges, and that he evaded arrest.
“Therefore,” as highlighted in the committee’s findings, “the investor appears to have submitted false and/or misleading information about his activities.”
Anubhav Aggarwal had applied for naturalization in July 2016, and it was approved just three months later, during a period when the provisions of the Cyprus Investment Program had changed.
The investigative committee for naturalizations mentions 68 Indians naturalized in Cyprus, while in India, the discussion revolves around 66 individuals.
