Introduction

Non-Resident Indians (NRIs) owning agricultural land in Punjab often rely on Power of Attorney (POA) to manage their property while living abroad. While POA is a lawful and practical tool, it has also become one of the most misused instruments in NRI agricultural land disputes.

At Sachar Law Firm, many disputes handled in Ludhiana courts involve situations where trusted relatives or associates exceeded or abused the authority granted under a POA, resulting in illegal sale, unauthorised leasing, or prolonged possession disputes.

This blog explains how POA misuse occurs, why agricultural land is particularly vulnerable, and what legal remedies NRIs can pursue.

What Is a Power of Attorney in Property Matters?

A Power of Attorney is a legal document authorising another person (the attorney holder) to act on behalf of the owner (the principal).

For NRIs, POA is commonly used for:

• Managing agricultural land

• Paying land revenue and taxes

• Representing before revenue authorities

• Leasing or supervising cultivation

However, POA does not transfer ownership and must strictly operate within the authority granted.

Why Agricultural Land in Punjab Is Highly Vulnerable to POA Misuse

Agricultural land disputes are more frequent because:

• NRIs are physically absent

• Revenue records are easily manipulated

• Cultivation creates appearance of possession

• Informal arrangements are common

POA holders often exploit these conditions to act beyond authority.

Common Forms of POA Misuse in NRI Agricultural Land

1. Unauthorized Sale or Agreement to Sell

POA holders sometimes execute:

• Sale deeds

• Agreements to sell

• Mortgages

without legal authority or consent. Such transactions are often challenged in court.

2. Long-Term Leasing or Batai Without Consent

Allowing third parties to cultivate land without proper documentation can create serious complications, especially when possession continues for years.

3. Mutation and Revenue Record Manipulation

POA holders may get:

• Mutation entries changed

• Names recorded as cultivators

This is often used later to falsely claim ownership or rights.

4. Creating False Family Settlements

In some cases, POA holders fabricate oral family settlements to justify possession or transfer.

Legal Position: POA Does Not Confer Ownership

Indian courts have consistently held that:

• POA is only an agency relationship

• Ownership remains with the principal

• POA holder cannot act beyond authority

Any act beyond the scope of POA is legally void or voidable, depending on circumstances.

Warning Signs of POA Misuse

NRIs should be alert if:

• Revenue records change without notice

• Property is leased without documentation

• Third parties claim possession

• Sale negotiations happen without consent

• Original documents are withheld

Early detection prevents irreversible damage.

Legal Remedies Available to NRIs

NRIs can take multiple legal actions:

Civil Remedies

• Cancellation of illegal transactions

• Suit for possession

• Injunction against further misuse

• Declaration of ownership

Revenue Remedies

• Correction of mutation and girdawari

• Challenge to illegal entries

Criminal Remedies

• FIR for cheating, fraud, or forgery

• Criminal breach of trust in appropriate cases

NRIs can pursue all these remedies through authorised representatives without personal appearance.

How to Safeguard Against POA Misuse

• Use limited and purpose-specific POA

• Avoid blanket authority

• Ensure proper stamping and registration

• Periodically verify revenue records

• Revoke POA immediately upon suspicion

Preventive drafting is the strongest protection.

Punjab-Specific Considerations

In Punjab:

• Collector embossing and stamp compliance is critical

• Revenue authorities play a major role

• Agricultural possession disputes escalate quickly

Legal oversight at the drafting stage saves years of litigation.

Conclusion

Power of Attorney is a necessary tool for NRIs managing agricultural land in Punjab, but blind trust often leads to serious disputes. POA misuse does not defeat ownership, but delay in legal action complicates recovery.

NRIs must remember that authority to manage is not authority to own. Careful drafting, regular monitoring, and timely legal intervention are essential to protect agricultural land from misuse and illegal transfers.