Cyprus court overturns CBI citizenship withdrawal due to risk of statelessness

The Administrative Court of Cyprus has quashed a decision to revoke citizenship issued under the citizenship by investment (CBI) programme in the case of Indian businessman Anubhav Aggarwal. The ruling was based on a serious procedural flaw: authorities failed to assess whether stripping citizenship would result in statelessness.

Aggarwal received a Cypriot passport in 2016. The case file notes that he was not convicted of any offences related to the financial allegations that later formed the basis for the citizenship revocation procedure.

Judge Ariadna Zervou concluded that the process was breached on multiple points. The most significant finding was that, at no stage, did the state authorities evaluate the consequence of revoking citizenship without an alternative status.

In the same decision, Aggarwal’s wife and son also lost their citizenship—and, according to the court’s implications, they may benefit from the revocation being overturned as well. The family was represented by Simos Angelides from the law firm Andreas S. Angelides LLC.

What the court ruled

As part of a broad review of the CBI programme, Aggarwal’s case was examined by an investigative committee chaired by former Supreme Court judge Myron Nicolatos. Following its review, the committee did not recommend revoking citizenship; instead, it suggested checking whether such a measure was even possible in the circumstances.

Nevertheless, the Council of Ministers revoked Aggarwal’s citizenship, relying on the view of an independent committee on citizenship withdrawal. That body concluded that, when applying for naturalisation, Aggarwal had concealed material information—namely a possible link to an investigation into financial wrongdoing in India and, in the committee’s wording, the existence of criminal proceedings at the time of filing.

Zervou disagreed with the authorities’ conclusions. The court stated that, as of the date Aggarwal submitted his application, no criminal case had been initiated against him.

The court also pointed to timing: the proceedings began in 2017, i.e., a year after the passport was issued. According to the decision, the committee failed to consider this key fact, even though it was the sole basis for the citizenship withdrawal.

The court further highlighted the formal nature of the right to be heard. Aggarwal’s lawyers submitted a detailed multi-page letter explaining the disputed circumstances; however, no authority assessed the arguments presented.

It was also emphasised that India does not allow dual citizenship. Therefore, when Aggarwal became a Cypriot citizen, he ceased to be an Indian citizen. Stripping him of his Cypriot passport, in the court’s view, could leave him without any citizenship—in other words, a “citizen of nowhere”.

This argument was raised by the lawyers in a letter dated 22 December 2021, citing international treaties, EU recommendations, and the case-law of the Court of Justice of the EU. Judge Zervou called it the “most serious defect” in the procedure: no agency at any stage weighed the issue of statelessness before voting to revoke citizenship.

At the same time, the court clarified the scope of its review: it assesses the lawfulness of the procedure, not the underlying facts. Cypriot authorities will now have to reconsider Aggarwal’s case and determine whether revocation is a proportionate measure, given the risk of statelessness.

ARK Imports and the NSEL crisis

Why did Nicolatos’s committee even focus on Aggarwal? According to corporate documents from India, he held 98% of the stake in ARK Imports Private Limited, a trading company based in Ludhiana, and served as its manager during 2011 to 2014. It is reported that ARK Imports owed 719 crore rupees (approximately $76 million) as one of the largest defaulters in the 2013 settlement crisis involving National Spot Exchange Limited (NSEL).

Nicolatos’s report noted that Aggarwal “appears” to have provided inaccurate information in his citizenship application. In 2020, he was reportedly arrested in Abu Dhabi on an Interpol Red Notice linked to the NSEL case; however, it is underlined that there were no convictions related to that matter.

Before the committee, Aggarwal’s lawyers acknowledged that he did not disclose his connection to ARK when applying, but argued that the absence of information does not necessarily mean an intention to mislead. Judge Zervou did not evaluate the substantive arguments; the decision is based on the fact that the investigation itself and the verification of these circumstances were not carried out.

CBI “clean-up” complicates court proceedings

The ruling in Aggarwal’s case comes at a time when Cyprus faces additional challenges in efforts to hold CBI beneficiaries accountable. In February, the criminal court in Nicosia acquitted former parliamentary speaker Demetris Syllouris and former MP Christakis Yovanis; the prosecution failed to secure key witnesses. The Attorney General said he intends to appeal.

Meanwhile, former Minister of Transport Marios Dimitriades and seven other defendants continue to face 59 charges, including corruption and money laundering. All of them deny wrongdoing.

At the same time, a separate issue is emerging that affects every ongoing citizenship-withdrawal case. In January 2026, the Court of Appeal in administrative matters asked the Supreme Constitutional Court for clarification on whether citizenship revocation decisions can be challenged in court, or whether such acts are sovereign decisions beyond judicial review. If the court sides with the state, cases like Aggarwal’s could remain without a full judicial examination.

After the CBI programme was terminated in November 2020, Cyprus revoked citizenship for 360 people: 101 investors and 259 family members.

Based on reviews of cases from 2007 to 2020 (a total of 6,779 citizenships granted), the Nicolatos commission stated that 53% of the cases, according to its findings, had been processed illegally. In March 2026, the European Commission closed the infringement procedures it had initiated against Cyprus.

If you’re considering Cyprus Golden Visa and CBI, it’s essential to look beyond eligibility and focus on legal risks tied to granting—and potential withdrawal—of status. The Cypriot court decision in a citizenship withdrawal case due to failure to assess the “statelessness” consequence highlights how crucial complete, accurate documentation is for the entire family. Want a tailored review of your case and the safest path under the program? Contact Digital Nomad: https://digital-nomad.gr/en/goldenvisa.

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