lemess wrote:Raikal,
I don't think it's a loophole. it's just that if you lost your Indian citizenship automatically without formally renouncing it ( as would be the case if you just acquired a foreign passport), you can reverse the process and get it back - obviously by renouncing the foreign citizenship.
On that front, the difference between OCI and PIO routes to full Indian citizenship is academic for most people who were once Indian citizens and did not formally renounce their Indian citizenship.
http://www.embassyofindia.com/change_city.htm
Re-Obtaining Indian Citizenship
Important : While the process of surrendering Indian Citizenship is easy, the process of re-acquisition of Indian citizenship is long and complicated, involving establishing resident status in India for at least five years.
Apply for a five year visa (Click here for timings, service charges and forms)
Register your presence in India with the concerned authorities within 14 days of your arrival in India. In major cities, the concerned authority would be the Foreigners Regional Registration Office (FRRO). In district headquarters, the District Superintendent of Police nominates an official to undertake this responsibility.
Stay in India continuously for a period of at least five years. Ensure that you carefully keep telephone bills, electricity bills, municipal tax receipts and any other documentation that will help you prove your resident status.
After a minimum of 5 years stay in India, formally apply for Indian citizenship to the office of the local district collector. You will have to fill in the required forms, attach relevant documentation and sign the oath of allegiance to the Indian constitution.
After your application is processed and approved, you will be issued a Certificate of Registration as proof that you have been registered as an Indian citizen. You will need to produce this Certificate when you apply to the nearest Regional Passport Office for a new Indian passport
After obtaining Indian citizenship, when you apply to the Singaporean authorities for repatriation of your CPF, medisave balance and any other amounts due to you from the Singaporean authorities, please ensure that you attach a copy of a letter from any Singapore Mission/ Consulate in India confirming that you have surrendered your Singapore citizenship and passport to them.