Why Is London A Hub For The Super-Rich?
The Logical Indian Crew

Why Is London A Hub For The 'Super-Rich'?

In the past few years, there has been a consistency of millionaires moving to London.

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A quick search on the internet will reveal that London is one of the cities accomodating maximum number of billionaires. It is the most preferred location by super-rich people to stay in. When it comes to expanding business wherever the company headquarters will be located will make a big difference.

London has certain unique qualities that attracts billionaires globally, especially Indians. In fact, there is a long list of billionaires who have records of committing financial frauds while staying heavenly in London.

For instance Nirav Modi, Vijay Mallya, Lalit Modi, etc. But how do they settle down there and live a rich and wealthy life?

Three reasons Why Billionaires Chose London

1. Extradition Treaty

Between India and the UK, there has been an extradition treaty signed but only a few of such individuals alleged of crime have been extradited under that. Also, it becomes difficult when legal teams of these economic fugitives try to influence Indian authorities. Stating harsh prison conditions in India or by claiming that the country's government is trying to influence investigating bodies.

For example, in 2019, Nirav Modi's legal team said that his extradition is politically inclined and therefore the United Kingdom judiciary allowed him to stay over there.

But comparatively United States is strict in all these types of fugitive activities as their securities and exchange commissions have a much tougher process and bring tougher investigation who are trying to escape capture.

Till now India asked UK for 9 extraditions but the UK court allowed only one extradition case in 2016 of Samir Bhai Vinu Bhai Patel.

2. London is a tax haven city

London is an attractive cosmopolitan city and fugitives settled in the UK because of the following reason.

a.British Tax laws.

b.Money evasion opportunities.

c.British commodity trading markets.

d.National Lottery System

E.Sports betting avenues

F.absence of the financial regulator.

All these reasons made all the fugitives settle down in London and live a wealthy life.

3. UK's Demands For Foreign Investment

The United Kingdom and its territories offer the lowest corporate taxes in order to entice foreign investments thus promoting investors hiding their illegal source of income i.e promoting money laundering.

These are the reasons all these rich people are able to set up their businesses easily in UK as per reported by Nutshell

The UK is also preferable because it is a financial hub and can be easily reached from Asia and the middle east part of the world. comparatively United states have tough tax laws.

Also Read: Govt Launches Initiative For Rural SHG Women To Become 'Lakhpatis'

Contributors Suggest Correction
Writer : Pratibha Sahu
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Editor : Palak Agrawal
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Creatives : Palak Agrawal