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Immigration Minister Liam Byrne said today: "The circumstances surrounding Tul Bahadur Pun's case are clearly exceptional, and in the light of this the Home Secretary, John Reid, and I have reviewed the case and made the decision to grant Mr Pun a settlement visa immediately.
"This decision was not taken lightly and reflects the extraordinary nature of this case, in particular Mr Pun's heroic record in service of Britain which saw him awarded the Victoria Cross. It is entirely right that this record should not only be recognised but honoured.
"There has always been scope to grant settlement in the UK to ex-Gurkhas who have retired before July 1997, and who do not meet the requirements in the immigration rules. As on this occasion, discretion may be exercised on a case by case basis. We have also taken into consideration his current medical condition."