Introduction

Granting a Power of Attorney (POA) to relatives in India helps manage property, banking, and financial matters smoothly. Many families use it when members live abroad or cannot handle affairs personally. The process is governed by the Powers of Attorney Act, 1882. Careful drafting and registration reduce the risk of misuse and disputes.

What Is a Power of Attorney in India?

A Power of Attorney is a legal document. It allows one person, called the principal, to authorize another person, called the agent or attorney holder, to act on their behalf. The authority may relate to property, banking, taxation, or legal representation.

The POA becomes effective once executed and, where required, registered. It remains valid until revoked or terminated by law.

What Are the Types of Power of Attorney?

There are two main types of POA in India.

A General Power of Attorney gives broad powers. It allows the agent to manage multiple properties, operate bank accounts, sign documents, and represent the principal in different matters. Families often use this when the principal lives abroad.

A Special Power of Attorney grants limited authority. It applies to specific tasks such as selling one property, signing a single agreement, or representing the principal in a particular case.

Stamp duty varies by state. When granted to close relatives such as parents, spouse, children, siblings, or grandchildren, concessional stamp duty often applies if there is no monetary consideration involved.

How Should a Power of Attorney Be Drafted?

Clear drafting protects the principal’s interests. The document may include full details of the principal and the agent. It may clearly describe the exact powers granted. It may define limits and duration.

The document may also contain an indemnity clause. This clause protects the principal against loss due to unauthorized acts. If the POA relates to property, it may attach a detailed schedule describing the property.

The principal may specify whether the POA is revocable or irrevocable. In most family arrangements, a revocable POA provides better protection. An irrevocable POA generally applies in cases involving loans or financial security.

Precise language avoids confusion. Vague wording often leads to disputes among family members.

Is Registration of POA Mandatory in India?

Registration becomes mandatory when the POA deals with immovable property transactions such as sale, transfer, or mortgage. The principal and agent appear before the Sub-Registrar with two witnesses. The authority records the document after verifying identity and payment of stamp duty.

Stamp duty depends on state laws and the nature of authority granted. If the POA involves consideration or is given to a non-relative, higher stamp duty may apply.

For NRIs, the POA may be executed abroad. The principal may sign before the Indian Consulate or a notary public. In many countries, apostille certification applies. After arrival in India, the document may require adjudication and stamping within the prescribed period, often between 90 and 120 days.

What Risks Exist When Granting POA to Relatives?

Family relationships do not eliminate risk. Unauthorized sale of inherited property and misuse of bank accounts remain common disputes. A POA automatically terminates on the death of the principal. It may also end upon revocation or legal incapacity. However, valid acts performed before termination remain legally binding. This makes timely monitoring important.

How Can Misuse Be Prevented?

The principal may limit powers to specific actions. The document may require periodic reporting. Copies may be shared with banks and relevant authorities for transparency. Regular review of transactions reduces risk. A revocable POA allows easier cancellation if problems arise. NRIs may issue a formal revocation deed and notify local authorities promptly. Clear communication with family members prevents misunderstanding.

How Can a Power of Attorney Be Revoked?

Revocation requires a written and registered revocation deed when the original POA was registered. The principal may notify the agent, banks, registrars, and concerned institutions. Public notice may also be published to avoid future disputes. If misuse occurs, the principal may file a civil suit seeking declaration or cancellation of transactions. Courts may grant injunctions to stop further misuse. In cases involving fraud or cheating, criminal proceedings may also follow.

Conclusion

Granting Power of Attorney to relatives in India offers convenience and flexibility. However, clear drafting, proper registration, and regular oversight protect the principal’s interests. A carefully structured POA reduces conflict and ensures smooth management of property and financial matters.