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Business Standard
a day ago
- Business
- Business Standard
Canada ends dummy work permit trick used by Indian, other foreign workers
Now, thousands of temporary foreign workers, including Indians, will not be able to rely on multiple applications to legally remain in Canada under the pretext of work permit extensions. Canada's immigration department last week changed the rules around 'maintained status' to crack down on so-called dummy extension applications, which have been on the rise. The move, announced in the June 2025 IRCC update, affects temporary residents who submit more than one work or study permit extension while remaining in the country. What are dummy extension applications? These are often filed without genuine job offers, allowing foreign nationals to extend their stay while waiting on a decision—even if they are unlikely to qualify. The term 'dummy' refers to the lack of intent to actually work under the applied conditions. Many such applications are submitted as placeholders, giving temporary residents—especially those awaiting permanent residency invitations—a way to buy time. They remain in Canada under 'maintained status' while their files remain in processing. As of June 2025, IRCC's average processing time for work permit extensions stands at 158 days. 'This change, which appears procedural on the surface, has major ramifications for international students and workers, notably those from India,' Zubin Morris, partner at Little & Co told Business Standard. How dummy work permit extensions work According to IRCC, the dummy application loophole exploits several aspects of the system: Maintained status eligibility: Anyone with a valid permit who applies before expiry gains maintained status, which allows continued stay and work under the previous conditions. No LMIA or offer number required: Open work permits don't need a Labour Market Impact Assessment (LMIA) or an offer of employment. These applications are harder to detect as fraudulent at the intake stage. Processing delays: With processing times running up to five months, applicants often use this period to find jobs, seek PNP nominations, or wait for Express Entry draws. Risk of misrepresentation: Applications filed without genuine intent could be rejected and trigger a five-year ban on applying for Canadian visas. 'According to IRCC's clarification, if the initial application is refused, any second application, even if submitted in advance, will not be considered. Maintained status ends the moment the first refusal is issued,' said Morris. Crackdown comes with higher risks for applicants Until now, many applicants filed a second application to safeguard their stay if the first was at risk. The new rule removes that cushion. Morris explained, 'Students whose permits are near expiry must be precise with their first extension application. A mistake, missing document, or even a delay can now end their legal status, despite a second application being filed. For workers, it could mean immediate job loss and the need to apply for status restoration or leave Canada.' Darshan Maharaja, a Canada-based immigration analyst, said the new rule could have knock-on effects. 'The unintended effect might be more people rushing to file asylum claims within the one-year deadline,' he told Business Standard. 'We saw nearly 500,000 temporary foreign workers enter Canada in just the first four months of 2025. By the end of 2024, over 300,000 asylum claims were pending. So this new rule may have limited impact—and could face legal challenges.' What IRCC accepts in absence of LMIA 1. The employer has submitted an LMIA application 2. The LMIA is expected to be decided in 1–3 months 3. The applicant is eligible to apply from within Canada Dummy applications often rely on open work permits or incomplete job details to bypass these requirements. Canada's move to tackle the issue Stricter triaging and cancellations: IRCC is introducing tighter screening of applications, especially those missing proof of employment or clear eligibility. Stakeholder feedback: Employers, consultants and advocacy groups have raised concerns about dummy applications distorting the system. Proposed intake filters: Some experts have recommended rejecting ineligible applications at the intake stage itself to speed up processing for genuine cases. From January to April 2025, IRCC processed 491,400 work permits. The overall backlog has now reduced to 35% of the total inventory, according to the latest update.
Mint
3 days ago
- Business
- Mint
Vijay Mallya—declared a fugitive economic offender—wants to return home. What are his options?
Mumbai/Bengaluru/New Delhi: After nearly a decade of silence, Vijay Mallya, the flashy business tycoon who founded one of India's fanciest airlines that eventually went kaput and resulted in him being declared a fugitive economic offender, has re-emerged to tell his side of the story. The 'King of Good Times' wants to return to India and clear his name if promised a 'fair trial and a dignified existence", he said in a podcast recorded in London, where he has resided since leaving India in 2016. 'We all know how long detentions and trials can last in India," he said. 'That's not justice." But while the former liquor baron has legal remedies available to him to return to India and settle the outstanding cases against him, it won't be a smooth landing, say legal experts. 'If Vijay Mallya steps off a plane in India, the legal chessboard lights up instantly," said Ketan Mukhija, a senior partner at law firm Burgeon Law. Mallya could voluntarily appear before the court and surrender, thereby invoking his right to apply for bail, including anticipatory bail, Mukhija said. Mallya's legal team, however, would have to contest every existing arrest warrant, lookout circular, and non-bailable order, arguing on grounds of procedural irregularities or the absence of fresh incriminating evidence, Mukhija added. Article 21 of the Constitution, which guarantees the right to life and personal liberty, including the right to a fair trial, would govern Mallya's request for a 'fair trial', according to Ajay Khatalawala, managing partner at law firm Little & Co. Mallya can also contest the tag of fugitive economic offender. The tag is proclaimed by a court when an individual accused of a serious financial crime, usually involving large sums, either flees the country or refuses to return to face trial. If Mallya decides to return to India and surrender, he can file a petition seeking to have the declaration of fugitive economic offender rescinded. However, the court will only consider such relief if it is satisfied that the return is genuine and made without mala fide intent, Khatalawala said. What Mallya said The podcast called Figuring Out, hosted by Raj Samani, featured Mallya's first public conversation in nine years, during which he claims to have not been given a chance of fair trial by the media. He claimed to be a victim of media sensationalism and political scapegoating. 'I regret one thing, which is that after all my hard work, all the value that I created in so many multiple ways, that effectively, the government of India and, of course, the media made me a zero from a hero. And that's a fact of life that I have had to stomach and live with," he said. At a very young age, Mallya was 'installed in the hot seat" as he became the chairman of the Bengaluru-based United Breweries Group after his father Vittal Mallya's demise in 1983. Helming UB Group, Mallya built Kingfisher beer into a dominant brand with over 50% market share. The eponymous airline that followed in 2005 was his vision to 'produce the best flying experience that India had ever seen". The acquisition of low-cost carrier Air Deccan in 2007 was widely blamed for Kingfisher Airline's downfall. Mallya said the acquisition was a calculated consolidation and not a means to by-pass a rule that required an airline to be operational for five years before it could fly internationally. The downward spiral came after the 2008 global financial crisis. Mallya said he approached the then finance minister Pranab Mukherjee with his plan to downsize his airline. Mukherjee asked him not to downsize and promised the airline would be supported by banks, Mallya claimed. Mukherjee passed away in 2020. With fuel cost rising and the government not allowing foreign investment in the aviation sector further complicated matters for Kingfisher Airlines, Mallya said. It was 'the economy, the circumstances, the government policy then existing all conspired to create a perfect storm through which King Fisher could not survive". 'Paid more than what was due' Mallya claimed in the podcast that while he owed only ₹6,203 crore to various banks, India's ministry of finance has reported a recovery of ₹14,131.6 crore, which is 'multiple times over." 'I am not a chor (thief)," Mallya said, refuting allegations that he fled India in March 2016 to evade authorities following the bankruptcy of Kingfisher Airlines, insisting he had planned a visit to Geneva to attend an international conference. Kingfisher Airlines, which was grounded in October 2012, owed more than ₹7,500 crore to lenders led by State Bank of India. The airline had accumulated losses of ₹16,023.46 crore as of 31 March 2013. He was being investigated by the Enforcement Directorate (ED), the Central Bureau of Investigation (CBI), and the Serious Fraud Investigation Office (SFIO) for various economic offences. But on 15 April that year, the ministry of external affairs suspended his passport. On the podcast, Mallya said he responded to a summons by the ED requesting more time to negotiate with his foreign collaborators to sell shares and settle the dues. Asked why he didn't fight harder to get his passport restored and return to India, Mallya said he was overwhelmed by the number of legal battles. 'How many fronts should I open at once? These are expensive and time-consuming battles." Fugitive or fall guy? Refuting allegations that he siphoned off funds from Kingfisher Airlines, Mallya said he infused ₹3,000 crore of United Breweries funds into the airline to keep it afloat. 'Nobody talks about that. If I intended to steal, would I have pledged my own shares and given personal guarantees?" he said. Mallya claimed that banks recovered double the amount he owed them by selling his assets. 'Yet despite 15 formal requests, they haven't given me a statement of account," he said. On the podcast, Mallya apologized for the non-payment of salaries to Kingfisher Airlines's employees. He claimed he made repeated attempts to get the Karnataka High Court to release ₹260 crore that it had frozen so he could pay employee wages. 'I offered settlements multiple times between 2012 and 2015 but they were all rejected," Mallya said. 'I am deeply sorry and I take full responsibility for it." Industrialist Harsh Goenka spoke out in Mallya's defence. While Mallya lived a 'high life" and had defaulted on loans, his dues have reportedly been settled, he said. 'Meanwhile, bigger defaulters walk free with much fatter haircuts from banks," Goenka said on social media platform X. 'If dues remain, the banks should clearly say so. If not, why is he still a political punching bag?" Mallya replied to Goenka on X that the finance ministry had 'confirmed in writing that Banks have recovered ₹14,100 crores from me against a DRT (debt recovery tribunal) judgement debt of ₹6,203 crores". Shriram Subramanian, the managing director of proxy advisory firm Ingovern doubts Mallya will return to India as there is no guarantee on what will happen to him. 'He has been the punching bag for all the large loan defaults by businessmen," said Subramanian. 'The cultivated political connections, lavish parties, and hi-profile public image makes him the ultimate fall guy."
