Phew! Thanks to the Indian govt.,... finally it looks like they have come to senses about the painful issues involved in the conversion process.
After my post earlier on (as above), I attempted to start the conversion process, since it was made mandatory at that time (in April), and I was asked to submit a huge array of documents by the CGI Birmingham for the conversion process to OCI (I will list the documents check-list if you want – it’s just simply mad mad Indian red-tape), and having looked at the list, I simply thought I don’t want to do this since possibly one day they will abolish this mandatory conversion and this ridiculous pile of paperwork (all triple copies + notary certifications, etc etc.), so I can avoid this painful paperwork filling up process, not to mention, the pain of running around from London to Birmingham on every visit (from application, to getting the OCI stamped).
Anyway, the good news is: The PIO to OCI conversion is now optional once again! (of course, as is usual with Indian govt. babus, in some govt websites it says this is “until further instructions” of course!

)
Since the old govt. websites information on this keeps completely being overwritten by new information (without any audit trail of last month’s information), I have pasted the contents of the current information from the govt website apart from also posting a link

[Note: I hope it is ok to paste the relevant contents here, but If pasting the content is not allowed, i request the moderators to delete it and only keep the urls please]
At least, for now, the PIO conversion to OCI is not mandatory within that random ridiculous 3 months limit!!!!!!!!
Also the UK VFS website page I linked to earlier on, seems to have been completely overwritten with the new information (as if they had never posted those mandatory conversion time limit points)
Hope this will help other PIO card holders.
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* * * * * No. 475/US(CPV)/2015
Government of India
Ministry of External Affairs
(CPV Division)
New Delhi, June 05, 2015CIRCULAR
1. This is to notify that submission of application for OCI card in lieu of PIO card is voluntary and optional. OCI card in lieu of PIO card can be applied at
https://passport.gov.in/oci. All extant PIO cards will continue to be valid until further instructions on the matter are conveyed by MHA.
2. Endorsements stating that existing PIO cards are valid for life would be made at the first point with which the card holder comes into contact, be it an Indian Mission, an FRRO or an immigration check-point. These endorsements/ stamps would, however, not be mandatory
##########################################
http://www.embassyindia.es/archives/doc ... -Cards.pdf
EMBASSY OF INDIA
MADRID
Revised Instructions on Conversion of PIO Card to OCI Card
In view of the practical difficulties being faced by PIO Card holders in the context
of their transition to OCI Card holders, the Embassy had taken up the matter with the
relevant authorities in India.
It has now been decided by the relevant authorities as follows:-
(i) PIO Cards would be treated as valid beyond the period of three months (viz. 9
January to 9 April 2015, as earlier announced).
(ii) Applying for OCI Cards in lieu of PIO Cards at the website
https://passport.gov.in/oci/ would continue to be optional for the applicant until further
instructions from the relevant authorities.
Para 2(1) below, therefore, is replaced by above instructions.
C.P. Gandhi
First Secretary (Cons)
22 May 2015
Conversion of PIO Cards to OCI Cards
(1) As per the Ministry of Home Affairs Notification dated 9 January 2015, with effect
from 9.1.2015, all the existing PIO cardholders are deemed to be OCI cardholders. A
separate online application system for issue of OCI card in lieu of the PIO card without
payment of any registration fee has already been devised and can be accessed at
https://passport.gov.in/oci/.
(2). The salient points of clarification relating to the conversion from PIO Card to OCI
Card are provided below:
• 1. Initially for a period of 3 months with effect from 9/1/2015, the submission of
application for OCI card in lieu of PIO card was voluntary. However, after the
initial period of 3 months, it has become mandatory with effect from 9.4.2015.