Introduction

Non-Resident Indians (NRIs) frequently rely on Power of Attorney (POA) to manage property in India while living abroad. While POA is a lawful and useful tool, poorly drafted or unrestricted POAs have become a leading cause of property disputes, illegal sales, and misuse, especially in states like Punjab.

A safe POA is not about trust alone—it is about clear legal limits, proper compliance, and continuous oversight. This checklist explains the essential points NRIs must consider before executing a POA for property-related purposes.

1. Clearly Define the Purpose of the POA

The POA must specify why it is being granted, such as:

• Managing agricultural land

• Collecting rent

• Representing before revenue authorities

• Executing specific documents

Avoid vague language like “all acts and deeds”.

2. Choose the Attorney Holder Carefully

Select someone who:

• Is reliable and accountable

• Understands legal responsibility

• Has no conflicting interest in the property

Blind reliance on relatives is a common source of disputes.

3. Use a Special or Limited POA Wherever Possible

• Prefer Special Power of Attorney (SPA) over General POA

• Limit authority to specific acts

• Avoid granting power to sell unless absolutely necessary

Unlimited authority increases risk.

4. Avoid Granting Right to Sell Without Safeguards

If sale authority is unavoidable:

• Specify minimum sale consideration

• Require written consent before execution

• Limit sale to a single transaction

Open-ended sale authority is frequently misused.

5. Ensure Proper Stamping and Registration

For property-related POA:

• Proper stamp duty must be paid

• Registration is mandatory for certain purposes

• In Punjab, Collector embossing within the prescribed time is essential

Non-compliance weakens enforceability.

6. Execute POA Through Indian Embassy or Consulate

NRIs should:

• Sign POA before Indian Embassy/Consulate abroad

• Follow local attestation requirements

• Courier the original to India for further compliance

This ensures legal validity.

7. Avoid Handing Over Original Title Documents

POA does not require:

• Original sale deeds

• Title documents

Retaining originals prevents unauthorized transactions.

8. Insert a Clear Revocation Clause

The POA should:

• Be revocable at will

• Mention automatic revocation on misuse or expiry

• Clearly state conditions for termination

Revocation should be legally documented.

9. Fix a Time Limit for the POA

Avoid perpetual POAs. Instead:

• Specify validity period

• Renew only if required

• Review authority periodically

Time-bound POAs reduce misuse risk.

10. Restrict Sub-Delegation

Explicitly state that:

• The attorney holder cannot delegate authority

• No third-party appointment is permitted

This prevents chain misuse.

11. Monitor Revenue and Property Records Regularly

NRIs should periodically check:

• Mutation entries

• Jamabandi

• Girdawari (for agricultural land)

Early detection prevents long-term disputes.

12. Keep a Copy of the POA and Acknowledgements

Maintain:

• Signed copies

• Registration receipts

• Stamp duty proof

Documentation is critical if disputes arise.

13. Revoke POA Immediately If Misuse Is Suspected

Upon suspicion:

• Issue a revocation deed

• Inform revenue and registration authorities

• Publish public notice if necessary

Delay strengthens the wrongdoer’s position.

Conclusion

A Power of Attorney is not merely a convenience document—it is a legal instrument with serious consequences. For NRIs, especially those owning agricultural or ancestral property in Punjab, a carefully drafted POA is essential to prevent misuse and litigation.

Following this checklist helps ensure that authority remains limited, accountable, and legally secure, protecting property rights despite physical distance.