By Sukanya Raman, Associate, D&A India
Under the Grenadian Citizenship by Investment (CBI) program if an applicant chooses to invest in a Government-approved the project, then the minimum investment in the share of the approved project is US $220,000 & it should be held for a minimum period of 5 years which is the statutory holding period.
Grenada CBI Committee has observed that some Marketing Agents and Local Agents are buying back the shares from the applicants soon after they obtain their citizenship of Grenada.
Marketing Agents and Local Agents are entering into a buyback agreement with the applicants and upon receiving citizenship the applicants are substantially repaid. This ultimately leads to investing below the qualified minimum investment amount required for the National Transformation Fund (NTF) and violates the law governing Grenada CBI Act and Regulations.
The investment amount under NTF is US $150,000.00 and the objective of NTF is to transform the Grenadian economy and to develop the industries, tourism, agriculture, and alternative energy sectors.
Grenada Citizenship by Investment unit issued a circular dated 22nd June 2020. It states as Marketing Agents & Local Agents should not give any discount, buyback or rebate to the applicants below the minimum investment amount prescribed by the Laws of Grenada i.e., US $220,000.00 and the applicant must hold the shares for the statutory period of 5 years. It is illegal to offer any buyback or rebate before the expiry of the statutory period of 5 years.
If the unit or committee finds out that any applicant/s has breached the Grenada CBI Act and Regulation their approved citizenship shall be revoked under section 11 of the Act.