Power of Attorney

A Power of Attorney (POA) is a legal document that authorizes one person (the agent or attorney-in-fact) to act on behalf of another person (the principal or donor) in specific legal or financial matters. The scope of authority granted can be broad or limited, depending on the terms of the POA. In Delhi, as in the rest of India, POAs are governed by the Powers of Attorney Act, 1882 and the Registration Act, 1908.

Types of Power of Attorney:

• General Power of Attorney: Grants broad authority to the agent to act on behalf of the principal in a wide range of matters. This2 could include managing property, handling financial transactions, and representing the principal in legal proceedings.

• Special Power of Attorney: Grants authority to the agent to act on behalf of the principal only in specific, defined matters. For example, to sell a particular property, to handle a specific bank transaction, or to represent the principal in a particular lawsuit.

• Durable Power of Attorney: Remains effective even if the principal becomes incapacitated (due to illness or mental disability). Specific language must be included in the POA to make it durable. Without such language, a POA typically terminates upon the principal's incapacity.

• Non-Durable Power of Attorney: Terminates if the principal becomes incapacitated or upon the principal's death. It also ends on a specified date or upon the completion of the task for which it was created.

Key Elements of a Power of Attorney:

A well-drafted Power of Attorney should include the following:

• Details of the Principal (Donor): Name, address, and other identification details.

• Details of the Agent (Attorney-in-Fact): Name, address, and relationship to the principal (if any).

• Scope of Authority: Clearly define the powers granted to the agent. In a general POA, this will be broad, while in a special POA, it will be specific.

• Duration: Specify the period for which the POA is valid. It can be for a specific time, until a certain event occurs, or until revoked by the principal. For a durable POA, it should explicitly state that it will remain effective despite the principal's subsequent disability or incapacity.

• Execution and Witnessing: The POA must be signed by the principal and usually requires attestation by two witnesses.

• Registration (in some cases): For certain types of POAs, especially those related to immovable property, registration is mandatory or highly advisable in Delhi.

Registration of Power of Attorney in Delhi:

In Delhi, the registration of a Power of Attorney is governed by the Registration Act, 1908. Here are the key points regarding registration:

• Mandatory Registration: According to Section 17(1)(d) of the Registration Act, 1908, a Power of Attorney authorizing the sale of immovable property must be registered. Additionally, if the POA is given for consideration and relates to immovable property, it also needs to be registered.

• Advisable Registration: Even if not mandatory, it is highly advisable to register a POA, especially if it involves significant financial transactions or management of immovable property. Registration provides a public record of the document and adds to its legal validity and enforceability.

• Where to Register: The POA needs to be registered at the Office of the Sub-Registrar in whose jurisdiction the principal resides or where the property is located (if it relates to property).

• Procedure for Registration: The process is similar to registering other documents:

• Drafting the POA: Prepare the POA document. You can hire a lawyer or a deed writer for this. Online deed writing services are also available through the Delhi Online Registration Information System (DORIS) portal.

• Stamp Duty: Pay the applicable stamp duty. In Delhi, the stamp duty on a Power of Attorney varies depending on the purpose and whether it's general or special, and whether it's with or without consideration.

  1. General Power of Attorney (without consideration): ₹100.

  2. Special Power of Attorney (without consideration): ₹100.

  3. Power of Attorney with consideration authorizing the sale of immovable property: Same as the stamp duty for a Sale Deed, calculated on the amount of consideration. The stamp duty can be paid through e-stamp paper.

• Registration Fee: Pay the registration fee at the Sub-Registrar's office. In Delhi, the registration fee for a Power of Attorney is ₹1000 per instrument, along with a ₹100 pasting fee.

• Appointment: Schedule an appointment to visit the Sub-Registrar's office through the DORIS portal (https://doris.delhigovt.nic.in/). All Sub-Registrar offices in Delhi have now migrated to the National Generic Document Registration System (NGDRS) portal, so ensure you are using the correct platform for appointments if DORIS redirects you.

• Visit to the Sub-Registrar's Office: On the appointed date and time, the principal, the agent (optional but advisable for identification), and two witnesses must be present at the Sub-Registrar's office. They should carry original identification proofs (Aadhar card, PAN card, passport, etc.) and passport-sized photographs.

• Verification and Signing: The Sub-Registrar will verify the identities and the document. The principal (and sometimes the agent and witnesses) will need to sign the POA in the presence of the Sub-Registrar.

• Registration: The Sub-Registrar will register the POA and provide a receipt.

• Collection of Registered POA: The registered POA can be collected after a few days upon presenting the receipt.

Revocation of Power of Attorney:

A Power of Attorney can be revoked by the principal at any time, provided the principal is of sound mind. The revocation should be done through a formal Revocation Deed, which should also be registered with the same Sub-Registrar's office where the original POA was registered. Public notice of the revocation (e.g., through a newspaper advertisement) is also advisable to inform third parties who may be dealing with the agent.

Important Considerations for Delhi:

• Online Appointment: Booking an online appointment through the DORIS or NGDRS portal is mandatory for visiting the Sub-Registrar's office for registration.

• Biometrics: During registration, the biometric impressions (fingerprints) of the principal and other executants are usually taken.

• Legal Advice: It is always advisable to seek legal advice from a lawyer when drafting a Power of Attorney to ensure it accurately reflects your intentions and complies with the applicable laws in Delhi.

• Clarity of Powers: Ensure the powers granted to the agent are clearly and specifically defined to avoid any ambiguity or misuse.

By understanding the types, requirements, and registration procedures for Power of Attorney in Delhi, individuals can effectively authorize others to act on their behalf in legal and financial matters. Remember that for transactions involving immovable property, registration is often mandatory for the POA to be legally valid.

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