New Delhi: On November 15, Rahul Gandhi, the former president of the Congress party, raised questions about the departure of certain individuals, whom he referred to as “param mitra” or close associates, during the “Amrit Kaal.” This inquiry stemmed from reports indicating that 66 Indians, including Vinod Adani, the elder brother of Gautam Adani, had obtained the “golden passport” in Cyprus.
In a Hindi post on X, Gandhi expressed skepticism about why these associates left India during the “Amrit Kaal” and suggested that the “golden passport” presented an opportunity for financial malfeasance. He asserted that individuals could exploit this scheme by embezzling public funds, establishing shell companies, and spending abroad.
The “golden passport” program, also known as the “Cyprus Investment Programme,” was initiated in 2007 to grant Cypriot citizenship to financially prominent individuals, attracting foreign direct investments (FDI) into the country.
In response, Amit Malviya, the IT cell in-charge of the ruling Bharatiya Janata Party (BJP), countered Gandhi’s claims. Malviya contended that during the Congress-led United Progressive Alliance (UPA) government, the India-Cyprus tax treaty created conditions favorable for tax evaders. He accused the UPA of facilitating a tax haven by allowing investors to bypass Capital Gains tax through the treaty.
Malviya asserted that under the BJP-led National Democratic Alliance (NDA) government, they took decisive action to overhaul the Double Taxation Avoidance Agreement (DTAA) with Cyprus in 2016. The revision, effective retrospectively from November 2013, aimed to shift the taxation of capital gains to the source country, challenging the previous system that enabled investors to hide behind their country of residence.
Malviya highlighted the introduction of a grandfathering clause for investments made before April 1, 2017, as a significant step. This clause ensured a fair transition to the new taxation regime, where capital gains would be taxed in the investor’s country of residence.
He refuted Gandhi’s accusations, stating that the “Golden Passport” was a remnant of the Congress party’s governance, symbolizing opaque financial practices. Malviya concluded by asserting that the departure of individuals accused by Gandhi was a consequence of the Congress party’s legacy of promoting tax havens and opaque financial practices, which the BJP’s reforms aimed to rectify.
