Power of Attorney in India: Types, Format & When You Need One

You can't be everywhere at once. Whether you're an NRI managing property in India, a business owner who needs someone to sign documents on your behalf, or a family dealing with an elderly parent's affairs, a Power of Attorney (POA) is the legal instrument that lets you authorize someone to act in your place.

But POAs are frequently misused, improperly executed, and misunderstood. This guide covers everything you need to know about POAs under Indian law.

What is a Power of Attorney?

A Power of Attorney is a legal document that authorizes one person (the "Agent" or "Attorney") to act on behalf of another (the "Principal"). It is governed by the Powers of Attorney Act 1882.

Key terms:

• Principal: The person who grants the authority
• Agent / Attorney-in-fact: The person who receives the authority to act
• Donee: Another term for the agent receiving the POA

Types of Power of Attorney

GPA vs SPA: Which One Do You Need?

• Use GPA when: You're abroad for an extended period, you need someone to manage all your affairs, or you're setting up estate management
• Use SPA when: You need someone to complete a specific transaction (property sale, court appearance, bank closure), or you want to limit the agent's authority

Pro tip: Always prefer SPA over GPA when possible. GPAs are more prone to misuse because of their broad scope.

Registration: When is it Required?

The Supreme Court ruling in Suraj Lamp & Industries v. State of Haryana (2012) dramatically changed POA law:

• ✅ Must be registered: POA for sale of immovable property, POA granting authority to execute registered documents
• ✅ Should be notarized: All POAs should at minimum be notarized for authenticity
• ⚠️ GPA property sales banned: The Supreme Court ruled that property cannot be legally transferred through GPA alone. A proper sale deed must be executed.

Registration Process

1. Draft the POA on appropriate stamp paper (rates vary by state)
2. Principal signs in the presence of 2 witnesses
3. Visit the Sub-Registrar's office in the principal's jurisdiction
4. Both principal (or authorized representative) and agent must be present
5. Pay registration fees (typically ₹1,000-5,000 depending on state)

POA for NRIs

NRIs frequently need POAs to manage Indian property, bank accounts, and legal matters. Special requirements:

• Execution abroad: The POA must be executed before the Indian Embassy/Consulate, or notarized by a local notary and then apostilled (for Hague Convention countries) or attested by the Indian Embassy
• Stamp duty: Must be properly stamped within 3 months of arrival in India (if not stamped abroad)
• Adjudication: The Collector/SDM must adjudicate the stamp duty before use

Revocation of POA

A POA can be revoked:

• By the principal at any time (except irrevocable POA coupled with interest)
• Upon death of the principal
• Upon insolvency of the principal
• By the agent renouncing the authority
• By court order

Important: If the POA was registered, the revocation must also be registered and the agent must be formally notified.

Red Flags & Common Misuses

• ❌ Property sale through GPA: Banned by Supreme Court , not a valid transfer
• ❌ GPA given to property dealers/brokers: Often used for unauthorized property transfers
• ❌ Irrevocable POA without interest: An irrevocable POA is only valid when coupled with an interest in the subject matter
• ❌ POA used after principal's death: Automatically invalid , any transactions are void
• ❌ Unlimited term without review: GPA should have periodic review dates or sunset clauses

Key Takeaways

• ✅ Use SPA (specific) over GPA (general) whenever possible to limit risk
• ✅ Register POA for immovable property transactions . It's mandatory
• ✅ GPA property sales are not valid transfers per Supreme Court ruling
• ✅ NRIs must get POA attested at the Indian Embassy or apostilled
• ✅ Revoke POA formally and in writing , especially if registered
• ✅ POA automatically terminates on the principal's death

Frequently Asked Questions

What is the difference between GPA and SPA in India?

A General Power of Attorney (GPA) grants broad authority to act on behalf of the principal in multiple matters. A Special Power of Attorney (SPA) authorizes the agent to perform specific, defined acts only. SPAs are safer as they limit the scope of authority and reduce risk of misuse.

Can property be sold through Power of Attorney in India?

No. The Supreme Court in Suraj Lamp & Industries vs State of Haryana (2012) ruled that property sales through GPA are not valid transfers. A proper sale deed registered under the Registration Act is required. POA can only be used to authorize someone to execute the sale deed on your behalf.

Does a POA need to be registered in India?

Registration is mandatory for POAs used in immovable property transactions. For other purposes, registration is optional but recommended. NRIs can get their POA notarized and apostilled at the Indian consulate in their country of residence.

When does a Power of Attorney become invalid?

A POA becomes invalid upon death of the principal, revocation by the principal, completion of the specified task (for SPA), expiry of the stated duration, mental incapacity of the principal, or if the agent renounces the authority.

Related reads: Stamp Duty Guide India · Rent Agreement Guide India · E-Contracts India Guide