A Power of Attorney (POA) is a legal document that authorizes one person to act on behalf of another. It is widely used in India for property transactions, financial matters, and legal representation, especially when the principal cannot be physically present.
What Is a Power of Attorney?
The person granting authority is called the principal, while the person receiving authority is called the agent or attorney-in-fact. The agent is legally bound to act in the best interest of the principal.
Why Is Power of Attorney Needed?
POA is useful in situations such as:
• NRIs managing property in India
• Elderly individuals handling finances
• Business delegation
• Medical or legal representation
Types of Power of Attorney
General Power of Attorney (GPA)
GPA grants broad authority over multiple matters like banking, property management, and legal affairs.
Special Power of Attorney (SPA)
SPA grants authority for a specific purpose or transaction, such as selling a particular property.
Is Power of Attorney Legally Valid in India?
Yes, POA is legally valid when executed properly and stamped as per state stamp laws. Registration is mandatory when POA relates to immovable property transactions.
Revocation of Power of Attorney
A POA can generally be revoked by the principal at any time unless it is irrevocable by nature.
Limitations of Power of Attorney
POA does not transfer ownership. It only authorizes actions on behalf of the principal.
Conclusion
Power of Attorney is a practical legal tool that simplifies transactions and decision-making when personal presence is not possible.