“Power of attorney is a legal document or instrument that gives ease of doing business to an individual who may otherwise not able to do so.”
In the absence of a power of attorney (POA) document, non-resident Indians (NRIs) would have found it almost difficult to manage their numerous assets in the country of their origin. This instrument or document helps them in managing their wealth in India.
Now, let us talk about some specific points that NRIs must keep in mind while executing a POA.
Is Physical Presence Necessary At The Time Of Execution?
An NRI does not have to be present in India in order to execute the PoA. This can be done in the country of their domicile, too. For this purpose, the NRI must get the document executed in the presence of a public notary and then get it authenticated by an official of the Indian Embassy in that country. Another document, also known as an apostille, would be executed that would verify the signature/seal of the person who authenticated the POA. Such a POA is needed to be stamped within three months from the date of receipt of the PoA in India.
Is It Necessary To Register A PoA?
Registration of a PoA is mandatory under Section 48, Schedule-I of the Indian Stamp Act. Only a registered PoA document is legally valid in India. Notarisation alone is not enough.
When Does A PoA Get Revoked?
The legal validity of the PoA extends until the life of the principal. They can revoke it in their lifetime, too, if the legal purpose of the PoA is solved. Do note here that the PoA would stand invalid if the principal is declared insolvent. While revoking, the principal must follow the same process as was done at the time of executing.
Is An NRI Responsible For Fraud Committed By A Representative?
The NRI cannot be held responsible if the legal representative commits a fraud using the PoA if the crime was committed without his knowledge. The principal would need to prove his ignorance regarding the matter in the court of law if the matter reaches court. Consulting a Property lawyer for the drafting of PoA and for processing the same is always better to avoid future hassles.