Property owners in Punjab—especially NRIs, senior citizens, and people living outside the city—often give a General Power of Attorney (GPA) or Power of Attorney (POA) to a trusted person for managing, protecting, or dealing with their property. While this practice is common and sometimes unavoidable, it is also one of the largest sources of property disputes in Punjab.

Many owners sign a POA believing it is a simple authorization document. In reality, an improperly executed or non-embossed POA can expose the owner to fraud, illegal transfers, and prolonged litigation. One of the most critical legal requirements, often ignored, is that such POA/GPA must be embossed by the Collector within three months after execution, after payment of the requisite stamp duty.

This blog explains why caution is essential while granting a GPA or POA and what legal safeguards must always be followed.

What Is a GPA or POA in Property Matters?

A Power of Attorney is a legal document through which a property owner (the principal) authorises another person (the attorney holder) to act on their behalf. In property matters, this authority may include:

• Managing the property

• Paying taxes or utility bills

• Dealing with tenants

• Representing before authorities

• In some cases, selling or transferring the property

A General Power of Attorney (GPA) usually grants broader powers, while a Special Power of Attorney (SPA) limits authority to specific acts.

Why Property Disputes Commonly Arise from POA/GPA in Punjab

Punjab has seen a large number of property disputes arising from misuse of POA/GPA due to:

• Excessive powers given without safeguards

• Blind trust in relatives, friends, or brokers

• Use of unregistered or improperly stamped POAs

• Failure to cancel POA after its purpose is served

• Illegal sale or mortgage of property by attorney holders

Once misuse occurs, the owner is forced into lengthy civil and criminal litigation, often lasting years.

The Most Ignored Rule: Collector’s Embossing Within Three Months

One of the most important legal requirements for a POA/GPA used in Punjab for property purposes is stamp duty compliance.

If a POA/GPA is executed:

• Outside Punjab

• Or on insufficient stamp paper

• Or before a Notary or foreign authority

Then it must be presented before the Collector for adjudication and embossing within three months of execution, after payment of the prescribed stamp duty.

Why Collector’s Embossing Is Mandatory

Without proper embossing:

• The POA may not be legally recognised by revenue authorities

• Sub-Registrar may refuse to act upon it

• Courts may treat the document as inadmissible in evidence

• Any transaction done on its basis can be challenged

In many property disputes, courts have held that an unembossed or improperly stamped POA cannot confer valid authority.

Risks of Ignoring This Requirement

Failing to get the POA/GPA embossed within the prescribed time can result in:

• Rejection of mutation applications

• Refusal of registration of documents

• Invalid representation before authorities

• Weak legal defence if disputes arise

• Allegations of fraud or unauthorised transfer

In practical terms, the owner may lose control over their own property while still being dragged into litigation.

Important Precautions Before Giving a GPA or POA

Before executing a POA/GPA for property matters in Punjab, always ensure the following:

1. Limit the Powers Clearly

Avoid vague or blanket powers. Clearly define what the attorney holder can and cannot do.

2. Avoid Power to Sell Unless Absolutely Necessary

Granting the power to sell should be the last resort. If unavoidable, add strict conditions.

3. Time-Bound Authority

Mention validity period or specific purpose to prevent perpetual misuse.

4. Mandatory Collector Embossing

Ensure the POA/GPA is presented before the Collector and duly embossed within three months.

5. Register the POA Where Required

In many cases, registration is essential for enforceability and acceptance.

6. Keep the Right to Cancel

Always retain the right to revoke the POA and communicate revocation to concerned authorities.

Special Warning for NRIs and Absentee Owners

NRIs frequently execute POAs abroad and send them to India. Such POAs do not become valid for property purposes in Punjab automatically. They must undergo stamping and embossing by the Collector after arrival in India.

Many NRIs lose property control simply because this step is skipped.

Role of an Advocate in POA/GPA Matters

An advocate ensures that:

• The POA is legally drafted

• Stamp duty is correctly assessed

• Collector’s adjudication is done in time

• Powers granted do not expose the owner to risk

• The document stands scrutiny in courts

Property matters should never rely on templates or informal advice.

Conclusion

Granting a GPA or POA for property management in Punjab is a serious legal decision, not a routine formality. While it may be necessary in genuine cases, failure to comply with stamp duty and Collector embossing requirements within three months can invalidate the document and invite disputes.

A POA should protect the owner—not become a weapon against them. Legal diligence at the time of execution can prevent years of litigation later.