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The Union cabinet this morning gave its nod to the MoU.
The MoU will facilitate visa free agreement for holders of diplomatic passports as well as liberalisation of UK visa regime for those who are travelling to the UK legally, an official statement said.
It will ensure the return of persons, who have no lawful basis to be in the territory of the other party, after verification of nationality.
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Prime Minister Narendra Modi is likely to be in London in the third week of April to attend the Commonwealth heads of government meeting.