Managing legal properties and finances for NRIs is tough abroad. So the ‘Power of Attorney’ (POA) is helpful for them. It is a legal document that allows a trusted person in India to act on behalf of. Whether it is managing bank accounts, selling property or representing you before government offices, the NRI power of attorney simplifies your process. 

The Power of Attorney Act, 1882, governs the execution of POAs in India. NRIs can easily complete the attestation and verification procedures through digital services and obtain a POA easily. 

What is an NRI Power of Attorney?

An NRI power of attorney (POA) is the legal document that grants authority to a person, known as the attorney, to act on behalf of the NRI in matters related to financial transactions, legal affairs, and property. NRIs can apply for the different types of NRI power of attorney, as follows: 

• General power of attorney ( GPA): It grants the broad power to agents, and allows them to manage the various matters on behalf of NRI, include financial matters and property sales. GPoA is not used to sell property, as per the Supreme Court ruling.

• Specific power of attorney (SPOA): This attorney restricts the person to specific tasks and ensures a more focused delegation of power.   It ends after completion of the matter and makes it safer for property transactions. 

Learn more about moving abroad for the first time. 

Can an NRI Give a Power of Attorney? (Legal Right & Process Abroad)

Yes, NRI can give the POA from outside India. It is the recognised process under Indian law and is provided to an NRI after attestation or apostille procedures. The two legal methods involved are  

• Embassy/Consulate Attestation: NRI should sign the POA in the presence of a Consulate official or the Indian Embassy. Then courier the attested POA to India.

• Apostille Process: The POA is apostilled by local authorities in the countries that are signatories to the Hague Convention

After the document reaches India, it should be stamped within 3 months of arrival at the local Collector’s office to make it legal.

Step-by-Step Procedure to Make a POA from Abroad

You can easily apply for a POA as an NRI from abroad. But this process requires careful attention to authentication timelines and requirements. The step-by-step NRI power of attorney procedure is given below.

• Draft POA document: Meet the Indian legal requirements and assign power to the representative clearly

• Notarization and witnessing: Sign the POA in the presence of a notary and two witnesses in your country of residence

• Authentication: Must have a POA either attested by the nearest embassy or apostilled if the country is a Hague Convention member.

• Send to India and register: Forward POA to the representative in India. The POA should be stamped, adjudicated and registered with the appropriate sub-registrar within three months of arrival. 

Registration & Stamping Requirements in India

POA should be stamped under the Indian Stamp Act, 1899, to become valid. Stamp duty varies from state to state. For example, Delhi and Maharashtra have specific rates for property-related POAs. For property registration in Mumbai, the stamp duty is calculated as a percentage of the property's market value ( usually 5% in municipal areas). The stamp duty in Delhi is 4-6% of the property value.

If you want to use POA for property transactions, then you should complete registration at the Sub-Registrar's Office under the Registration Act, 1908. On the other hand, Stamping is sufficient without an NRI power of attorney registration for non-property-related matters.

Format & Key Clauses in an NRI POA 

The NRI power of attorney format includes the following details:

• Grantor details include name, age, occupation, and foreign/Indian address

• Attorney details include name, age, father's name, address, and occupation

• State the clear reason for the POA

• Commencement date

• Signature of grantor on every page of POA

Validity, Renewal & Revocation Rules

POA validity varies on the basis of the terms of the document. It does not expire automatically. It lasts for the period the principal specifies, or till it is revoked, superseded, or the principal dies. POA automatically becomes void upon death of the principal.

The grantor can revoke it anytime if competent mentally. NRI must proceed with the revocation through a written or registered Deed of Revocation. You should notify the third parties and the attorney in writing. Then publish a notice for the legal NRI power of attorney validity. If you fail to notify, then it binds the grantor for legal actions.

Legal Validity in India 

The NRI power of attorney  is used for the following contexts in India

• Banks – for investment, accounts, and loan management.

• Property transactions – for leasing, sale or management.

• Courts – In legal proceedings under the Indian Evidence Act, 1872.

Restrictions applicable

• A general PoA can’t transfer immovable property rights legally. For this, the NRI must have the registered sale deed

• The PoA should be specific, executed properly and registered with the immovable property

• As per the legal framework, the PoA must adhere to the Registration Act, 1908 and the Powers of Attorney Act, 1882, with other relevant statutes

Common Mistakes & Risk Precautions for NRIs

Here are the common mistakes NRI should be aware of and the precautions they should take to apply for PoA 

Common mistakes 

• Send unstamped or unattested documents

• Grant broad powers under GPOA

• Fail to register the PoA related to the property 

• Forgot to revoke expired or old PoA

Precautions 

• Must prefer special SPoA for specific tasks 

• Define the clear time limits and powers

• Use two witnesses

• Notify registrars after revocation. 

Conclusion

Applying for the Power of Attorney as an NRI helps you to manage the property and legal matters in India. By following the above steps and complete documentation, you can protect your interests effectively.

FAQs

1. Are witnesses required for NRI PoA?

Yes, two witnesses are required to apply for a PoA. Having valid identity proof (like Aadhaar, PAN, or voter ID is sufficient.

2. Is it important to register PoA in India?

Yes, if NRIs want to sell the property, then they must have a PoA.

3. Can an NRI apply for a PoA from abroad?

Yes, the NRI can also apply for PoA from abroad, but must comply with Indian and local laws.

4. Can a PoA be revoked from abroad?

Yes, the PoA can also be revoked from the PoA through a Revocation Deed attested at the Indian Embassy.