IR

In April 2025 the European Court of Justice (ECJ) ruled that Malta’s “golden-passport” programme—citizenship by investment (CBI) for a fixed fee—breaches EU law because it commercialises Union citizenship and undermines mutual trust among Member States. That judgment instantly spot-lighted three classic ways in which countries confer nationality: jus soli (birth on the territory), jus sanguinis (blood/descent) and investment-based naturalisation (economic purchase). UPSC examiners can now link the ECJ decision to India’s own stance—namely, a constitutional bar on dual citizenship paired with the halfway house of the Overseas Citizen of India (OCI) card. The sections below unpack each handle in detail.

What did the ECJ strike down—and why?

Malta’s CBI scheme:

Since 2020 Malta had offered naturalisation to foreigners who: (a) donated €750 000 to a state fund, (b) bought or rented Maltese property, and (c) resided for 12 months—without any genuine cultural or family ties.

In Case C-181/23 Commission v Malta (29 Apr 2025) the Court held that turning nationality into a “mere commercial transaction” violates the principle of sincere cooperation in Article 4(3) TEU and erodes mutual recognition of passports inside the Schengen area.

The ruling follows earlier EU pressure that had already forced Cyprus (2020) and Bulgaria (2022) to dismantle similar golden-passport schemes.

Implications:

Member States keep primary control over nationality, but the ECJ signalled two red lines: (i) there must be a “genuine link” between applicant and State, and (ii) passports cannot be traded for pre-set payments. Other CBI programmes—e.g., in the Caribbean—now face fresh scrutiny.

Comparative modes of acquiring citizenship

Jus soli (“right of soil”)

Core idea: Anyone born on the territory is automatically a citizen.

Typical examples: USA, Canada, most of Latin America retain unconditional jus soli.

Key static points: Linked to equality before law; prevents statelessness but may encourage “birth tourism”.

Jus sanguinis (“right of blood”)

Core idea: Citizenship derives from parent(s)’ nationality regardless of birthplace.

Typical examples: Germany, Italy, Japan (with varying generational limits).

Key static points: Reinforces diaspora bonds; can exclude long-term resident migrants.

Investment-based naturalisation

Core idea: Fast-track passport in exchange for minimum capital contribution or bonds.

Typical examples: St Kitts & Nevis (since 1984), Antigua & Barbuda, Vanuatu; until recently Malta, Cyprus, Bulgaria.

Key static points: Criticised for money-laundering risk; may be halted by supranational courts (see ECJ ruling).

Overlaps and hybrids:

Many states blend principles (e.g., Portugal offers naturalisation after five years’ residence plus language, while allowing CBI via its now-restricted “golden-visa” route). Questions can test the comparative advantages and ethical dilemmas of each model.

India’s position on dual citizenship

Constitutional and statutory bar:

Article 9 of the Constitution bars Indian citizens from simultaneously holding foreign passports. Parliament retained this bar while amending the Citizenship Act in 2003.

MEA/Consular advisories emphasise: “The Constitution of India does not permit dual citizenship.”

Supreme Court angle:

Indian courts have upheld the bar, noting that citizenship is a matter of exclusive parliamentary competence (List I, Entry 17). A typical prelim question may ask under which Article citizenship is listed (Ans: Articles 5-11 in Part II).

The Overseas Citizen of India (OCI) framework

Creation:

Statutory base: Section 7A, Citizenship Act 1955 (inserted 2003) provides for registering persons of Indian origin as OCI cardholders.

Rights enjoyed: Visa-free lifelong entry; parity with NRIs for property (except farm land) and domestic airfares; equality in PAN/Aadhaar acquisition.

Restrictions: No political rights (vote, legislature, judiciary, public service), no agricultural land, no government subsidies; must re-issue card once at age 20 and 50.

Legal status:

Statutory base: OCI is not citizenship; it is a form of “multiple-entry, multipurpose lifelong visa”. OCI holders remain foreign nationals.

Why introduced?

Statutory base: To strengthen diaspora ties in lieu of full dual citizenship, especially for long-settled PIOs in the U.S., U.K., and Australia.

Dynamic changes (2021–2024):

Recent MHA notifications require OCIs to obtain a Special Permit for missionary work, mountaineering or research and to intimate local FRRO on changes in address or marital status—details the UPSC may probe.