Power of Attorney

POA is delegation of authority in writing by which one person is empowered to do an act in the name of the other. The person who acts on behalf of another person by his authority, express or implied, is a called an agent and the relation between him and his principal is called agency. POA is basically a document of convenience where the circumstances require formal appointment of a trustworthy person to act on principal’s behalf in a particular transaction or series of transactions.

POA is a legal instrument through which one bestows his authority to someone known and trustworthy to carry out some specific financial and legal transactions. Power of attorney provides ease of doing business in one’s absence. This document gives the person a right to act on one’s behalf to carry out various activities as mentioned herewith

  • Rent out the property or Lease the property to someone
  • Sale or Purchase assets like property, stocks, mutual funds, etc
  • Filing of taxes, handling bank accounts, signing cheques, etc.
  • Obtain any relevant document from any government department
  • Making a complaint to Police or before any other authorities
  • Signing complaints, petitions, applications, forms, affidavits, bonds, agreements, etc. and to submit the same under his own signatures

More so, Power of attorney is such a powerful tool which gives a person right to appear on one’s behalf even in the court of law to file a court case and even appear for cases filed against the principal person.

Types of Power of attorney

Generally there are two types of Power of attorney, a General POA and a Special POA

The basic difference between the two is that GPA grants overall powers to a person in whose favour the POA is made whereas SPA is about a specific activity which a POA holder can carry out on behalf of the principal.

General Power of Attorney

A GPA grants wide range of powers to the appointed person as No specific purpose is mentioned in this document. The principal can decide to exclude some powers specifically so as to restrict the appointed person not to act on those matters. A General Power of attorney remains in force till it is cancelled or revoked by the principal or determined by death of either of the party.

If you grant someone a GPA, they can pay your utility bills, collect rent on your behalf, manage and settle disputes

, carry out all bank-related work as your representative GPA is extensively used for sale or purchase of property by NRIs

Special Power of Attorney

SPA is a document through which the principal grants Specific Powers to the attorney. In layman’s language, a principal can direct the SPA to act as his legal representative in a particular court case, In such a SPA it is only in that particular court case that the person will be able to represent the principal person.

A special Power of attorney is automatically gets revoked once the specific transaction or purpose for which it’s executed is completed.

Registration of Power of Attorney

As Power of attorney is a legal document, it needs to be drafted in a specified format using legal language specifically mentioning the basic objectives, responsibilities and duties of that a principal wishes to authorise the appointee to carry out on your behalf. For this document to be valid, it has to be duly signed by you and Notarized by Notary Public. Further it must be executed and registered at the Sub- Registrar’s office.

Power of Attorney by NRIs

Power of attorney acts as a boon for NRIs who cannot travel to India frequently and need someone to take care of their properties and assets in India. POA is a tool of convenience used by NRIs for sale and purchase of their property in India.

As POA involves legal and financial transactions, measures and precautions should be taken to avoid any kind of fraudulent activity.

A person living abroad (NRI) has to get the POA Notarized by Notary Public from the country of origin and then get the same endorsed from the Indian embassy/consulate in the country of origin.

He/she also has to get a copy of his passport attested by the notary public and also the copies of Passport of the attesting Witnesses along with POA before he sends the same to India. Once the Power of attorney document reaches India, the same needs to be endorsed by the concerned revenue department to make it a valid document

Power of Attorney is a crucial legal document which needs meticulous drafting and adherence to avoid any kind of conflict and harassment at later stage. Our Team at RK Legal Advisors has been guiding our NRI clients in understanding the importance of Power of Attorney and step by step procedures of Notarization and Attestation from Indian embassy in their country of residence.

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