Vanuatu's Citizenship Commission has advised the Office of Immigration not to renew the passport of Amarendra Nath Ghosh, who has faced fraud charges involving some of India's largest banks.
He arrived in Vanuatu in 2000 having fled India amid allegations of widespread fraud.
He established close links with Vanuatu's then Prime Minister, Barak Sope, and was granted a passport, which he last month applied to renew.
Mr Ghosh was made the honorary Thai consul by Mr Sope and he offered the Government a supposedly enormous ruby valued at 175 million US dollars.
The Government had intended using it as collateral but the deal never went ahead and the ruby has never materialised.
Mr Ghosh also provided Port Vila with two rubbish collection trucks emblazoned with his name, while an Ombudsman's report revealed the controversial businessman also deposited 20,000 US dollars in Mr Sope's wife's bank account.
The Citizenship Commission met last Thursday and decided it would not grant a citizen's certificate to Mr Ghosh.
It says Mr Ghosh is not a naturalised Vanuatu citizen and so is not entitled to a passport.
The constitution of Vanuatu only allows a foreigner to become a naturalised citizen after living in the country for 10 years.
