How to execute and revoke NRI Power of Attorney?

A non-resident Indian (NRI) wanting to buy, sell or rent his property has to know about one important document that will help him do all these activities without him/her physically being present in India. The NRI Power of Attorney (PoA) is a critical document required for NRIs who are keen in real estate or any financial transactions in India. Mentioned in this guide are details regarding the NRI PoA including the format and the legal process involved.

What is NRI Power of Attorney (PoA)?

A legal document that authorises a person to act on behalf of the NRI in legal and financial matters within India is known as the Power of Attorney. The person who is granted this is known as the attorney or the agent. Note that this person should be a trusted source as he will be in the capacity of taking decisions and executing operations of the NRI in India.

What are the various types of NRI Power of Attorney?

There are various types of NRI Power of Attorney that are available. An NRI should evaluate among the mentioned ones and choose what fits best for them.

• General Power of Attorney (GPA): Valid for a particular duration of time, an attorney can do routine tasks on one’s behalf. This has to be registered so that it is legally valid. Also known as the conventional power of attorney, this is granted to only people who can be trusted to a great level owing to the provisions it allows the attorney to access.
• Limited Power of Attorney: As the name suggests this allows an attorney to carry out tasks on behalf of the authority but only limited tasks.
• Specific Power of Attorney: This type of Power of Attorney allows the agents to only perform specific tasks.
• Property Power of Attorney: This type of power of attorney helps an agent help the NRI with property-related things such as buy, sell or manage a property.
• Durable Power of Attorney: The attorney can take decisions on behalf of the grantor. This power of attorney is issued when the grantor is not able to take proper decisions. This is valid lifelong and expires once the grantor dies or the grantor cancels the power of attorney.

Benefits of Power of Attorney for NRIs

Power of Attorney plays an important role for NRIs. Mentioned below is the role that they play and the benefits offered.

An NRI PoA provides flexibility of location. In fact, to execute a NRI PoA, an NRI is not required to be physically present in India. They can execute the PoA in their country of residence with the help of the Indian embassy present there.

• To register outside India one can use method of legalisation and apostillisation- which have its own set of process to follow.
• If legalisation is chosen, one has to adhere to the Diplomatic and Consular Officers (Oaths and Fees) Act, 1948. Under this, an applicant has to notarise the power of attorney through an authorised officer of the Indian Consulate/Embassy. Note that under the Section 2(17) Schedule-I of the Indian Stamp Act, 1899, stamping within three months of receipt in India is compulsory under legislation.
• In case of apostillisation, it is necessary to have an apostille certificate to verify the authenticity of the signatory. The deed drafted must comply with the Power of Attorney Act of 1882and the Indian Registration Act of 1908. Lastly, stamp duty is levied once the document is received so that there is compliance with respect to financial obligations.
• Helps in taking decisions remotely: With the POA, NRIS need not be physically present and can authorise someone to take decisions on their behalf.
• Helps carry out timely transactions: Once the authority has authorised a person as the attorney, then he will be able to carry out tasks such as leasing, buying selling or property or even managing the property in a timely manner and doesn’t require the NRI to be available in the country. Also, transactions that may require timely decisions to be made can be done without the NRI being present physically. 

• Compliance work: When it comes to property buying, selling or managing, there may be many legal procedures to be fulfilled. This is impossible for NRIs as these processes may be required to be completed at different timelines. Power of Attorney helps in such cases.

• Constant monitoring: This can be helpful in safeguarding a property as property maintenance will be overseen constantly. This helps safeguard the property.

How to execute a NRI Power of Attorney?

NRIs can execute the power of attorney (PoA) by visiting the sub-registrar’s office (SRO).

• The copy has to be drafted on a non-judicial stamp paper of Rs 100.
• There has to be two legal representatives and witnesses.
• Authority and attorney should provide ID proofs and photos.
• After submission and deed is executed, the PoA is finalised and issued in 4-5 days.

How can a power of attorney be executed in India by an NRI?

• The power of attorney holder should be an Indian resident.
• Power of attorney in the format shown should be executed on a non-judicial stamp paper of Rs 100 in the state where it is executed and duly notarised.
• The POA should have photograph of the POA holder and attested by the POA makers.
• Judicial Magistrate should attest the signature of the POA makers.
• POA maker must sign on every page of the Power of Attorney.

How can a power of attorney be executed outside India by an NRI?

• Power of Attorney Holder should be a resident of India.
• Power of attorney in the format shown should be executed on a non-judicial stamp paper of Rs 100 in the state where it is executed and duly notarised.
• The POA should have photograph of the POA holder and attested by the POA makers.
• The POA maker should sign the POA in front of official of Indian Embassy in the country of residence. The official will also attest the signature of POA maker.
• POA maker must sign on every page of the Power of Attorney.

Should NRIs register power of attorney?

Under Indian Registration Act, 1908, it is not mandatory for NRI to register the power of attorney for sale of property in India. However, if a POA has been executed for an immovable property’s sale in India, the Supreme Court mandates registration.

The registration process should be done at the SRO that falls within the jurisdiction of the attorney’s place of residence.

What is the stamp duty for NRI Power of Attorney?

The stamp duty for an NRI POA differs across states. This depends on the attorney that is chosen. In a general power of attorney, the stamp fee is based on the relationship of the attorney or the agent with the person. In case the attorney is a blood relative of the authority, then the stamp duty will be Rs 500. If the attorney is not a close relative, then the stamp duty is more.

How can an NRI cancel or revoke power of attorney?

• A power of attorney is valid only till the principal person is alive.
• The principal can revoke or cancel the power of attorney anytime he wants.
• A power of attorney is nullified if the principal is declared as lunatic.
• If an NRI wants to revoke the power of attorney, he has to follow the exact process as that of execution: visit the SRO in the presence of two witnesses.

Is NRI accountable if attorney commits fraud?

In case of a property transaction if the attorney commits a fraud in the absence of NRI’s knowledge, then the NRI may not be held guilty for it. However, the NRI should show that he is unaware of the doings of the attorney and that they were not executed with his permission.

Sample format of Power of Attorney for NRIs

Sample Power of Attorney for NRIs TO ALL WHOM THESE PRESENTS SHALL COME BE KNOWN TO ALL BY THESE PRESENTS THAT I, XXXXXXXXXXXXXXXX (hereinafter called the EXECUTANT) s/o XXXXXXXXXXXXXXXX Aged XXXXXXXXXXXXXXXX yrs r/o XXXXXXXXXXXXXXXX, state as follows:-

Whereas I am personally residing in XXXXXXXXXXXXXXXX and therefore unable to attend to the managerial and other affairs with respect to my property situated at XXXXXXXXXXXXXXXX, I, hereby nominate and appoint XXXXXXXXXXXXXXXX R/o XXXXXXXXXXXXXXXX as my true and lawful General Attorney to act for and on my behalf and I authorize and empower my above named Attorney to do the following acts, deeds and things in my name and on my behalf:-

1. To manage, govern, and supervise the aforementioned property in every way possible, as well as to sign the Sale Deed and get it registered with the appropriate authorities.
2. To enter into a sale agreement, receive an earnest money deposit and, if applicable, a partial payment, and then to exercise the agreement and obtain the total consideration amount in his own name.
3. To sign, verify, and present the Sale Deed for registration in the office of the Sub-Registrar of suitable jurisdiction to accept its execution, review the sale consideration, make statements, and perform all other acts, deeds, and things required for the same.
4. To apply for and get the appropriate sale permission from the concerned departments via a NO OBJECTION CERTIFICATE.
5. To enter into a Rent Agreement in respect of the aforesaid property or a portion thereof, to execute the Rent Agreement, to receive an advance, to receive security, to issue a rent receipt, to deliver possession, to evict the tenant through the legal process or by negotiation, and to reclaim possession of the aforesaid property.
6. To acquire approval from a competent authority to sell this property in his or his nominee’s favour and to complete the relevant formalities in this regard.
7. To get the aforementioned property transferred and mutated in the concerned authority’s records.
8. To submit a building plan for additions and changes to the property, as well as the necessary estimates and other information.
9. To make payments to the competent authority for House Tax, Electricity, and Water Charges, as well as any other dues and requests.
10. To sign, complete, submit, and present forms, among other things.
11. To Sign, submit, and execute affidavits, declarations, indemnity bonds, surety bonds, undertakings, and No Objection letters, among other documents. (d) Obtaining documents and making statements.
12. To prepare, sign, and file all types of lawsuits, plaints, complaints, appeals, revisions, statements, and applications relating to the aforementioned property and its management.
13. To proceed with the conduct of all courts procedures for this property and its management and appoint an advocate for the purpose.
14. To settle, compound, or withdraw court cases, appoint architects to proceed with arbitration processes, hire lawyers, deposit and withdraw money, execute decrees, receive and reclaim the decree amount, issue receipts, and conduct other necessary steps.

I approve and confirm all acts, deeds and things done by the said Attorney for this property shall be binding on me in all respects.

Signed and Delivered by the within – named XXXXXXXXXXXXXXXX XXXXXXXXXXXXXXX (Signature) In the presence of 1.

Witness No 1 XXXXXXXXXXXXXXXX (Name) XXXXXXXXXXXXXXXX (Address) XXXXXXXXX (Signatures) 2. Witness No 2 XXXXXXXXXXXXXXXX (Name) XXXXXXXXXXXXXXXX (Address) XXXXXXXXX (Signatures)

THIS IS ONLY A SAMPLE DRAFT. PLEASE SEEK PROPER LEGAL ADVICE BEFORE EXECUTING A POWER OF ATTORNEY IN FAVOR OF ANY PERSON.

Source: Legalhelpnri.com