Foreign citizens of Indian descent can take advantage of many benefits from India’s Overseas Citizen of India scheme (OCI), such as free lifetime visa travel; and there are many provisions where they will have the same economic entitlement and access to certain education benefits. OCI status can be revoked by means of voluntary renunciation or compulsorily cancelled pursuant to certain statutes, laws, and implementations allowed in the country. In order to fully understand a foreign-born citizen’s rights, privileges, and commitments in regard to their OCI card; they need to know about the legal grounds, the procedure to apply for an OCI card (and cancellation), and the results that occur after obtaining an OCI card.
Legal Framework Governing the OCI Program
The OCI program is governed by the Citizenship Act, 1955, along with all rules, regulations, and notifications issued by the Government of India. The Government of India’s Ministry of Home Affairs (MHA) is the primary administrative agency for the registration, cancellation, and all other activities related to the OCI program.
Grounds for OCI Card Cancellation
OCI registration may be cancelled by the Government of India under several circumstances. Key grounds include:
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OCI Card Cancellation Reasons
The Government of India has the ability to terminate an OCI registration for a variety of reasons. The main reasons for cancellation are as follows:
- Fraud or Misrepresentation: If the government finds that an individual obtained their OCI status by providing false information, concealing material facts, or providing fraudulent documentation, they can terminate their OCI registration
- Disaffection Towards the Constitution: If an individual has demonstrated disaffection or antipathy towards the Constitution of India (e.g. acts or activities that would undermine the sovereignty or integrity of India), the government can revoke the individuals OCI
- Security Reasons: The government will cancel the OCI if the government finds that the OCI holder is a threat to national security, a threat to public order, or a threat to the friendly relations of India with other foreign nations
- Violating Laws: The government can terminate the registrant’s OCI for an egregious violation of Indian laws (especially laws that relate to moral turpitude) or for a criminal act
- Engaging in Restrictive Activities: There are a number of activities related to the OCI registration that require prior approval before engaging in related activity, such as missionary work, mountaineering, and conducting research. The OCI holder can have their OCI cancelled for engaging in any of these activities without prior government approval.
The voluntary renunciation of an OCI status occurs when one of the following applies:
- You no longer wish to enjoy the benefits of an OCI for whatever personal or professional reason you might have;
- There may be tax or legal consequences in your country of citizenship as a result of holding an OCI status;
- You no longer wish to keep ties to India or maintain your OCI status.
Renouncing an OCI status is very simple, but there are still some formal requirements that must be completed in order to avoid any further complications.
Cancellation or Renunciation of OCI Card:
- Cancellation & Initiation Process:
Generally, the process for cancellation will be initiated by the authorities based on various reasons such as legal violations, intelligence information, or an administrative review. In this case, the office of the OCIigh Court may issue a notice to the OCI holder in order to advise them of the grounds for issuance of cancellation.
- Right To Be Heard
In accordance with the principles of natural justice, the individual has the right to have an opportunity to be heard. The individual may be given an opportunity to respond to the allegations made against them and provide evidence or otherwise defend themselves against the cancellation action prior to a final determination being made by the competent authority.
- Issuance of Order
After making a determination regarding the cancellation order, the competent authority shall issue a cancellation of the OCI registration. The OCI holder will then have to return their OCI card to the Government of India.
- Procedure To Voluntarily Renounce OCI Card
A person who wishes to voluntarily renounce their OCI card must apply online using the Official OCI Portal and submit the required documents and original OCI card to the Government of India for approval. Upon receiving approval from the Government of India for the voluntary renunciation of an OCI card, the Volunteer Renunciation Certification will be issued.
Consequences of Cancellation or Renunciation
If you no longer hold OCI status, there are numerous legal issues (and practical issues) stemming from the loss of this visa status.
- Loss of Visa Free Access
OCI cardholders enjoy an unlimited ability to travel to India without needing a visa. However if your OCI has been revoked or renounced, you must apply for the necessary visa before you can return to India.
- Limitations on Economic and Educational Rights
OCI cardholders are the same as NRIs for certain types of activities; such as education and economic investment. If your OCI has been revoked or renounced these entitlements are no longer active.
- Effects on Property/Residency
OCI cardholders can own certain types of property in India; therefore their ability to manage their property, and stay in India for an extended period of time, may be affected.
- Blacklisting/Restrictions on Travel
In many cases, there have been travel restrictions attached to the cancellation of OCI status due to major violations of law or due to significant national security concerns.
- Limitations on Reapplying
If you wish to re-receive OCI status after it has been revoked or renounced, this is not a guarantee; it will be based on the original grounds for revocation. Further, if the original cancellation was due to fraud or national security concerns, the chances of having your OCI restored are very low.
Summary of Important Points
The status of OCI has many benefits, but there are also significant legal obligations associated with it as well. The cancellation or renunciation of one’s OCI status will have far reaching implications regarding travel, residency, and economic activity in India. Therefore, individuals must strictly comply with the law and thoroughly consider these implications before cancelling or renouncing their OCI status.
Due to the complexity of the issues surrounding OCI cancellation and renunciation it is recommended that individuals seek the advice of a qualified legal professional to ensure compliance and help protect their rights and interests.
We LEGALLANDS LLP, a Legal500 ISO certified law firm provide services related to drafting Data Processing Agreements, Share-Purchase Agreements, Service Level Agreements, Company Incorporation, Joint Ventures, Merger and Acquisitions, Intellectual Property Rights (Trademark, Copyright, Patents), Technology Transfer, Contract Conveyancing and Corporate Services, International Disputes (DGFT), Internation Trade (CEPA/FTA), Sports Law, Gaming Law, and Immigration Matters.
Prerna Bhakoria is a skilled Legal Associate at LEGALLANDS LLP, in the field of Corporate Law. She holds a BBA LLB degree with a specialization in Banking and Finance from the University of Petroleum and Energy Studies (Batch 2018-2023).
Her areas of practice in Corporate Law include drafting of legal agreements, corporate compliance, client management.
