Artificial Intelligence has taken the world by storm, and its advancements have opened up new possibilities in various fields. One such field is image generation through AI technology that can produce images with remarkable detail and accuracy. However, as exciting as these developments are, they also raise some critical questions regarding the ownership of AI-generated images. AI-generated arts are disrupting social media, print media, and mass media whereas the Indian copyright office is faced with dilemmas and turmoil regarding the implementation of the strict action. Currently, there is no legal framework governing the right to AI-generated images, which creates several potential issues. For example, if an AI-generated image is used without the creator's consent, it can be considered copyright. The ownership of these images and the overall consideration of these images as intellectual property is strictly under question. This paper aims to explore and provide insight into this topic. The author will delve into the legal framework surrounding AI-generatesd image ownership in India while considering different stakeholders' perspectives on the issue. The author will also provide policy recommendations that would benefit all parties involved, such as creators, licensees, and the general public. Overall, this goal is to provide readers with a comprehensive understanding of the legal issues surrounding AI-generated images in India. The paper will conclude by providing recommendations for policymakers who must consider all relevant factors when creating policies regarding this complex matter.