Power of Attorney (POA) is the perfect instrument for the NRIs if they are living abroad and facing difficulty in managing their numerous assets in India. NRIs need to execute POAs to delegate responsibility to someone in managing their wealth in India.
FAQ’S regarding POA:
Is physical presence compulsory at the time of execution?
An NRI does not have to be physically present in India in order to execute the POA. This can be done in the nation of their residence, too. For this purpose, an NRI must get the document executed in the presence of a public notary and then get it verified by an official of the Indian Embassy in that country. Another document, also named as an ‘apostille’, would be executed that would verify the signature of the person who authenticated the power of attorney document. Such a POA is required to be stamped within three months starting from the date of receipt of the POA in India.
Is it mandatory to register a POA?
Registration of a POA is compulsory under Section 48, Schedule-I of the Indian Stamp Act. A registered POA document is legally valid in India. The only notarization is not enough.
Can you sell property and land through a POA?
A Power of attorney could be used to carry out some specific (special power of attorney), and general (general power of attorney) works. In real estate, a power of attorney could be executed for the purpose of renting, borrowing, leasing and dispute settlement, etc. It is important to know that a property and land sale through a power of attorney is illegal. According to the Supreme Court, a POA is not an instrument of transfer about any right, title or interest in an immovable property.
When does a POA get ‘revoked’?
The legal validity of the POA continues until the life of the principal applicant. They can revoke it at any time, too, if the purpose of the POA is solved. It needs to be kept in mind that the POA would stand invalid if the principal applicant is represented as an insolvent. While revoking, the principal applicant needs to follow the same procedure as was performed at the time of executing, i.e. he/she has to go to the Sub-Registrar’s office along with two witnesses to get the POA revoked.
Is an NRI responsible for fraud committed by a representative?
An NRI cannot be held responsible in case the legal representative commits a fraud using the POA and if the crime was committed without his/her knowledge. However, the principal applicant would need to prove his/her ignorance pertaining to the matter, in the court of law, if the matter is presented in the court.