I do have access to hdfs user and yes we can change the ownership using
sudo -u hdfs hadoop fs -chown <some-user> /user/oozie/test1
I just wanted to ensure that if this is expected behavior that even after granting rwx via Ranger authorization we cannot change the ownership.
Yes, this is the expected behavior. Ranger Policies are just for the ACL and not for ownership. The right way to do out here is to use Ranger for all the ACLs. You should you want root to access /user/oozie/test1, then from Ranger Admin, you should give "root" the required access to the folder. Ideally, you shouldn't play with owner and group.
Based on all the discussion, this is expected behavior. Even after giving full permissions via ranger, only superuser can modify ownership.