OCI Cardholders: Who They Are and Their Property-Related Rights

In light of recent news confirming no changes to the rules for Overseas Citizens of India (OCI), let’s take a closer look at the details of OCI status and the rights and privileges granted to OCI cardholders.

 

An OCI (Overseas Citizen of India) card, introduced in August 2005, allows Persons of Indian Origin (PIOs) who were Indian citizens on or after January 26, 1950, or were eligible for Indian citizenship at that time, to register for this status. The scheme effectively grants lifelong visa-free travel and residency in India, though it does not confer full citizenship. When introducing the legislation, Home Minister L.K. Advani described it as a means to offer dual citizenship to the Indian diaspora.

 

An OCI cardholder is a foreign national of Indian origin who has been granted the status of an Overseas Citizen of India (OCI) by the Government of India. The OCI card is a long-term visa that allows people of Indian origin to live and work in India for extended periods without needing to renew their visa status repeatedly. It also grants certain privileges to the cardholders, although it does not give them full citizenship rights.

Who is Eligible for an OCI Card?

  1. Former Indian Citizens: Individuals who were citizens of India on or after January 26, 1950, or were eligible to become citizens of India on that date.
  2. Descendants of Indian Citizens: Children, grandchildren, or great-grandchildren of a person who was a citizen of India at any time.
  3. Spouses: Spouses of Indian citizens or OCI cardholders can also apply, provided the marriage has lasted for at least two years.

Property Related Matters of NRIs/OCI card holders in India

 

Q- Can OCI card holders purchase property in India?
A- OCI card holders can purchase residential and commercial properties in India. But they are not permitted to purchase agricultural land, including farmland or any kind of plantation property.

 

 

 

Q- Can a foreign national of non-Indian origin resident outside India purchase immovable property in India?
A- No. A foreign national of non-Indian origin, resident outside India cannot purchase any immovable property in India unless such property is acquired by way of inheritance from a person who was resident in India. However, he/she can acquire or transfer immovable property in India, on lease, not exceeding five years. In such cases, there is no requirement of taking any permission of/ or reporting to the Reserve Bank of India.
Q- Can a foreign national who is a person resident in India purchase immovable property in India?

A- Yes, a foreign national who is a ‘person resident i n India’ within the meaning of Section 2(v) of FEMA, 1999 can purchase immovable property in India, but the person concerned would have to obtain the approvals and fulfil the requirements, if any, prescribed by other authorities, such as, the State Government concerned, etc. The onus to prove his/her residential status is on the individual as per the extant FEMA provisions, if required by any authority.However, a foreign national resident in India who is a citizen of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal and Bhutan would require prior approval of the Reserve Bank.

 

Q- A person had bought immovable property, when he/she was a resident of India,

  • Can he/she continue to hold such property even after becoming an OCI card holder?
  • Can he/she gift such properties?

 

A-

  • Yes, a person who had bought residential/commercial property/agricultural land/ plantation property/farm house in India when he was an Indian citizen, can continue to hold that property without the approval of the Reserve Bank after becoming an OCI card holder.
  • Yes. He/she may transfer residential or commercial property in India by way of gift to a person resident in India or to a person resident outside India and is a citizen of India or to an OCI card holder resident outside India.

 

 

Q- A foreign national of non-Indian origin resident in India or outside India had earlier acquired immovable property in compliance with the relevant FERA guidelines with the specific approval of the Reserve Bank;

  • Can he/she continue to hold the same?
  • Can he/she transfer such property?
A-

  • Yes, he/she may continue to hold the immovable property under holding license obtained from the Reserve Bank.
  • However, he/she can transfer the property only with the prior approval of the Reserve Bank of India.

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