What is Power of Attorney (PoA). With FAQ's.

Power of Attorney (POA): An agreement executed when a person can give powers to another person, allowing that person to do anything on behalf of the primary person. This is generally done when a person is unable to perform any act in person and wants to sign some legal papers or wants to do any other work but is unable to do, this is why POA is made so that he/she can delegate someone else to perform the work for them. 

Types of Power of Attorney

General Power of Attorney (GPA)

• Huge powers: property maintenance, bank dealings, court proceedings, etc.
• E.g., NRIs giving GPA to relatives to manage property in India.

Special Power of Attorney (SPA)

• Restrained powers for limited action.
• E.g.: Signing a sale deed for one property only.

Durable POA (very rare in India, but mostly applicable across countries)

• Survives even when the principal becomes mentally incapacitated.

Reasons POA is used

• NRI properties are managed in India.
• Elderly parents authorise children to conduct banking or medical purposes.
• The principal is unable to reach in person for business transactions.

FAQs on Power of Attorney

Q1. Can I give Power of Attorney to anyone?

Yes, any adult (18+) of sound mind. Most people choose family, close relatives, or trusted associates.

Q2. Is Power of Attorney valid without registration?

For property transactions, registration is mandatory under the Registration Act, 1908.
General purposes will suffice with a notarisation (banking, etc.).

Q3. How is POA executed?

Drafted on stamp paper, value differing from state.
Signed by the principal.
Attested before a notary or registered at the Sub-Registrar office (if property-related).

Q4. I live outside India. Can I make a POA in India?

Yes. NRIs can execute POA at the Indian Embassy/Consulate abroad and get it stamped and registered in India.

Q5. Can one POA cover multiple properties?

Yes, if it is a General POA. But a Special POA will cover only a specific property/transaction.

Q6. Can POA be misused?

Yes. Agents may exceed authority. That’s why it’s safer to use a Special POA for limited powers.

Q7. Can I revoke a POA?

Yes, by giving written notice of revocation. If it’s registered, the revocation must also be registered.

Q8. Does POA end automatically on my death?

Yes. All POAs become invalid upon the death of the principal.

Q9. Is it mandatory to register GPA for property sale?

Yes. Even then, the Supreme Court has clarified (Suraj Lamp case, 2011) that GPA cannot be used to transfer ownership of property. Only a sale deed/transfer deed can do that.

Q10. Can my POA holder sell my property to themselves?

Legally yes, but only if the POA explicitly permits it. Courts view such transactions with suspicion.

Q11. How long is a POA valid?

Until revoked, or if the time limit is mentioned, or on the death of the principal.

Q12. What happens if my agent dies?

The POA automatically becomes invalid. You need to make a fresh one.

Q13. Can a husband give POA to a wife for property?

Yes. Common practice among couples, especially if one is abroad.

Q14. Can POA be used for court cases?

Yes. You can appoint an attorney to represent you, but only a licensed advocate can argue the case.

Q15. Can a POA holder take a loan against my property?

Only if explicitly mentioned in the POA. Banks usually insist on registered POAs.

Q16. Is e-Power of Attorney valid?

Presently, only a physical POA with a stamp and registration is legally enforceable.

Q17. Can multiple people hold POA jointly?

Yes. You can appoint more than one attorney and specify if they act jointly or individually.

Q18. Do I need a lawyer to draft a POA?

Not compulsory, but advisable for property or financial matters.

Q19. What stamp duty is payable on POA?

Stamp duty varies by state. For instance, Delhi: ₹100 stamp duty for POA to family, higher if authorising sale.

Q20. Can I cancel POA given to a relative if relations sour?

Yes. You must issue a revocation deed, notify the relative, and ideally publish a notice in newspapers.