UK to scrap proposed £3,000-visa bond scheme

The British government has decided against implementing a controversial ''security bond'' for some ''high-risk'' visitors from foreign countries, including those from India, the home office said on Saturday.

The controversial scheme, one of the most unpopular immigration proposals of the Conservative-led coalition government in the U K, had proposed a £3,000 "security bond" for the so-called "high-risk" foreign visitors to the UK from these six Commonwealth  countries.

The scheme would have made it mandatory for persons on visitors' visa from India, Pakistan, Sri Lanka, Bangladesh, Nigeria and Ghana to pay the deposit, which would be forfeited if they did not return home.

The visa scheme, which aimed at limiting the number of people from six countries, including India, Pakistan, Sri Lanka, Bangladesh, Nigeria and Ghana, from staying in the UK beyond the expiry of short-term visas, was to come into force this month.

''The government has been considering whether we pilot a bond scheme that would deter people from overstaying the visa. We have decided not to proceed,'' a home office statement said.

The scrapping of the scheme, announced by UK home secretary Theresa May in June, comes close to the meeting of heads of states of Commonwealth countries to be held in Sri Lanka.

Also, there was opposition to the scheme from within the UK government. Deputy prime minister Nick Clegg had threatened to block it.

UK's minister of state for foreign and commonwealth affairs Hugo Swir had recently said that no decision was taken on the visa bond scheme.

India had also expressed concern over the proposal, which would have made Indians visiting the UK pay a £3,000-pound cash bond before arrival in the UK.

The scheme, if implemented, would have caused much harm to the UK economy as well. It would have deterred investments and the flow of genuine tourists from these countries.

It was condemned by both immigrant workers groups within the UK as well as industry groups like the Indian Chamber of Commerce and Industry.

Welcoming the scrapping of the proposal, the Indian Workers Association (IWA) said in a statement the move is in recognition of the enormous benefit to Britain from foreign investment.

Quoting official figures IWA said: ''From official OECD figures, Indian entrepreneurs invested £35 billion in UK, while the UK-based companies invested £20 billion in India. A net gain of £15 billion in Britain's favour. This investment is most noticeable in the motor, engineering, food and steel industry creating jobs for people in Britain.''