POWER OF ATTORNEY

AND AGENCY
Name:– Himanshi tanwar
Course:– Ba llb (hons)
Enrollment number:-220060401035
INDEX
1. What is the need of power of attorney
2. What is power of attorney?
3. What is NRIs and POA in property
4. Power of attorney format
5. Why power of attorney is dangerous if not given properly?
6. Stamp duty for power of attorney
7. General power of attorney vs special power of attorney
8. General power of attorney format
WHAT IS THE NEED OF POWER OF
ATTORNEY
• Sometimes it becomes almost impossible for a person to look after all
its legal and business affairs; That can be a result of old age, poor
health, lack of expertise or any other reason. This is when power of
attorney comes to picture. It allows you to authorise a person to carry
out either a particular act or all acts connected with your trade,
business, employment etc. It acts as a helping tool for a person who is
incapable of performing those acts due to above mentioned reasons.
WHAT IS POWER OF ATTORNEY
• Power of attorney legally gets defined as the "authority whereby one is
set in the turn/stead or place of another to act for him.
• It means handing over to somebody, the authority to act on your behalf
• We refer to the person granting the POA as the 'principal' individual
involved or the 'donor' or 'grantor' and the person who stands to attain
the POA the 'donee' or grantee or the'agent.
• Remember, an agent need not be a lawyer to hold a power of attorney.
• In India, issues related to the Power of Attorney are governed by
the"The Powers of Attorney Act, 1882 - applicable to the entire country
except Jammu & Kashmir.
NRIs and POA in property
• NRIs have the right to buy commercial or residential property inIndia
• There is no limit to the property they can buyHowever they can't buy
agricultural land or farm houses or even plantations - neither can they be
gifted these
• But they can gain the latter in inheritance• There are various aspects that
need to be comprehended and adhered to, as far as property issues are
concerned
• It is imperative therefore that they have full knowledge on this issue and
understand how to protect themselves from any harassment
• However overseas citizens don't always find it easy to travel back and forth to
India to sort out such issues-hence the importance of a POA
POWER OF ATTORNEY FORMAT
• Power of Attorney is a legal document executed by one or more persons
giving an authority to one or more persons to act on his or her behalf. Power
of Attorney is governed by the Powers of Attorney Act, 1888. The person
giving authority is called the attorney of the party giving the authority. The
person receiving powers is called Power of Attorney holder. Normally, there is
no requirement for registration of Power-of-Attorney. However, if the Power
of Attorney creates an interest in any immovable property, then the Power of
Attorney must be registered. Power of Attorney can be authenticated before a
Registrar or Sub-Registrar within whose district or sub-district the principal
resides and in case a Power of Attorney is executed outside of India, it can be
authenticated by a Notary Public or any Court, Judge, Magistrate, Indian
Counsel or via Counsel or a representative of the Central Government.
WHY POWER OF ATTORNEY IS
DANGEROUS IF NOT GIVEN
PROPERLY?
•
When a person (A Principal/Donor) gives power of attorney to another person (An
Agent/Donee), he authorises that person to carry out all the act in the name of the Principal.
This means that the Agent would have full legal power to act in the name of the Principal and
that the actions of the Agent would be considered as the actions of the Principal. This concept is
based on the legal maxim “Qui facit per alium facit per say” which means, He who acts through
another does the act himself. Giving a person power of attorney would mean that the principal
would be responsible for his agent’s action. Power of attorney is an extremely dangerous
document if not given properly. It is very easy to misuse this authority for personal gains. One
must think thoroughly before giving someone the power of attorney. This is because, when a
person appoints someone be their Agent, he is basically sharing the decision-making power with
the Agent. For example- when the donee spends the donor’s money to benefit the donee, rather
than the donor, without permission. Power of Attorney makes the donor liable for donee’s action
in the due course of the purpose. Thus, an agent’s fraud committed in the course of the purpose
is equivalent to fraud committed by his principal. To conclude we can say that it is very important
for a person to choose his donee/agent very carefully.
STAMP DUTY FOR POWER OF
ATTORNEY
• If a General Power of Attorney is conferred to father, mother, brother, sister, wife, husband,
son, daughter, grandson, granddaughter or any near relative, without any consideration, then
Stamp Duty of Rs. 500/- is only applicable for registration. In case, General Power of Attorney
is conferred to a person other than close relative and/or for consideration, then stamp duty is
payable as per the market value of the property or the consideration, whichever is higher.In
addition to the stamp duty, a registration fee of Rs.100 is applicable if the Power of Attorney
is conferred without consideration in the name of father, mother, brother, sister, wife,
husband, son, daughter, grandson or granddaughter or a near relative. In any other case,
registration fee is payable at the rate of Rs.10/- per Rs. 1000/- with a minimum of Rs. 100/-
and maximum fee of Rs. 30,000/- on the market value of property or consideration,
whichever is higher.Stamp Duty payable for Special Power of Attorney is Rs. 100/-.
• Note: The stamp duty for power of attorney would vary based on the State and powers
conferred in the Power of Attorney. Hence, its best to consult a Lawyer while executing a
Power of Attorney.
GENERAL POWER OF ATTORNEY vs
SPECIAL POWER OF ATTORNEY
• In a general Power of Attorney, the executor of Power of Attorney
(Principal) authorizes the Power of Attorney holder to perform any
nature of activity in the context of his immovable and movable
property in his name and on his behalf. In a Special Power of Attorney,
the Principal authorizes someone to perform limited activities on
his/her behalf or confers limited rights.
GENERAL POWER OF ATTORNEY
FORMAT
• To All to Whom these presents shall come, I <Name of Person Giving Power of Attorney>, Son/Daughter of <Father’s
Name>, aged <Age in Years>, residing at <Address>
• Whereas I am desirous of appointing some fit and proper person to look after all my immovable properties, business and
other affairs and requested <Name of Person Receiving Powers>, Son/Daughter of <Father’s Name>, aged <Age in Years>,
residing at <Address> (hereinafter called ‘the Attorney’) to act for me and manage and look after my affairs which the
Attorney has consented to do.
• NOW KNOW YOU ALL AND THESE PRESENTS WITNESS that I, the said and do hereby appoint the said Attorney as my true
and lawful Attorney with full power and authority to do and execute all acts, deeds, and things as hereinafter mentioned.
1. To contract with any person for leasing for such period at such rent subject to such conditions as the attorney shall see
fit, all or any of the said premises and any such person, to let into possession thereof and to accept surrenders of leases
and for that purpose to make and execute any lease or grant or other lawful deed or instrument whatsoever which
shall be necessary or proper in that behalf.
2. To pay or allow all taxes, rates, assessments, charges. Deductions, expenses and all other payments and outgoings
whatsoever due and payable or to become due and payable for or on account of my said lands, estates and premises.
3. To enter into and upon my lands and buildings and structures whatsoever and to view the state and defects for the
reparation thereof and forthwith to give proper notices and directions for repairing the same and to let manage and
Improve the same to the best advantage and to make or repair drains and roads thereon.
4. To sell (either by public auction or private treaty) or exchange and convey transfer
and assign any of my lands and buildings and other property for such consideration
and subject to such covenants as the Attorney may think fit and to give receipts for
all or any part of the purchase or other consideration money And the same or any of
them with like power, to mortgage charge or encumber and also to deal with my
immovable personal property or any part thereof as the Attorney may think fit for
the purpose of paying off reducing consolidating, or making substitution for any
existing or future mortgage. charge, encumbrance. hypothecation or pledge of the
same or any part thereof as the Attorney shall think fit and in general to sanction
any scheme for dealing with mortgages, charges hypothecations or pledges of any
property or any part thereof as fully and effectually as I myself could have done.
5. To purchase, take on lease or otherwise acquire such lands, houses, tenements
and immovable property generally as the Attorney may think fit or desirable.
6. To enter into any development agreement with any developer or builder
authorising him to develop any of my properties as mentioned above and to do and
execute all acts and deeds as may be required to be done or executed.
7. To continue and or to open new, current and or overdraft accounts in my
name with any Banks or Bankers and also to draw cheques and otherwise to
operate upon any such accounts.
8. To engage, employ and dismiss any agents, clerks, servants or other persons
in and about the performance of the purposes of these presents as the
Attorney shall think fit
9.To settle any account or reckoning whatsoever wherein I now am or at any
time hereafter shall be in anywise interested or concerned with any person
whomsoever and to pay or receive the balance thereof as the case may require.
10. To defend any suit or legal proceedings taken against me in any court of law
and to do all acts and things as are mentioned above.
11. To accept service of any writ of summons or other legal processes or notice
in any suit or legal proceedings and any person to represent in such court civil
or criminal, or revenue court or tribunal or before any officer or other Tribunal
whatsoever.
12. To exercise any power and any duty vested in me whether solely or jointly with
another or others as executor, administrator, trustee or in any other fiduciary capacity
(including powers and trusts to sell or lease land or to receive and give good receipts
for money) so far as such power or duty is capable of being validity delegated.
13. And also to appear before the Registrar or Sub – Registrar of any District or Sub-
District appointed or to be appointed under any Act or law for the time being in force
or otherwise for the registration of deeds, assurances, contracts or other Instruments
and then and there or at any time thereafter to present and register or cause to be
registered any deeds, assurances. Contracts or other instruments In which 1 am or
may be by the Attorney deemed to be Interested and to pay such fees as shall be
necessary for the registration.
14. To enter into, make, sign, seal, execute, deliver, acknowledge, perform all
engagements, contracts, agreements, deeds, declarations, bonds, assurances and
other documents, papers, writings and things that may be necessary or proper to be
entered into, made signed, executed, delivered, acknowledged and performed for any
of the purposes of these presents or to or in which I am or may be party or in any way
Interested.
15. In general to do all other acts, deeds. Matters and things whatsoever
in or about my estate, property and affairs or concur with persons jointly
Interested with myself therein in doing all acts, deeds, matters and things
herein either particularly or generally described as amply and effectually
to all Intents and purpose as I could do in my own proper person if these
presents had not been made.AND I, the abovenamed do hereby
undertake to ratify whatever the Attorney or any substitute or agent
appointed by him under the power In that behalf hereinbefore contained
may lawfully do or cause to be done in and by virtue of these presents.
• IN WITNESS WHEREOF I, the abovenamed have hereunto set my hand
this <Day> day of <Date> in the <Month, Year>.Signed, scaled and
delivered in the presence of <Witness Details>
• Note: The power of attorney clauses would be modified based on the
requirements of the Principal and Attorney.
THANK YOU!!