Power of Attorney
4 months ago
My mother resides in Mumbai with me, while she owns property in her hometown, Ayodhya, including a bungalow and farmland outside Ayodhya city. Unfortunately, a dispute has arisen with the neighbor regarding the farmland (KHET) as he has encroached some good portion from our farm leading to a recent court case. As my mother now lives in Mumbai, my maternal uncle (maama ji) and aunt (mausi) are managing the local affairs but now they have sent to us "power of attorney". so my mausi can take further things in absence of my mother. However, I am concerned that the power of attorney might lack specificity, as it seems to suggest that my aunt (mausi) has the authority to handle all matters on behalf of my mother. Does this imply that she could potentially sell the land and the bungalow as well?
A GPA holder/constituted Attorney is given a limited power which the principal agrees upon and it does not confer any title or interest in the immovable property of the Principal. The validity of Power of Attorney extinguishes with the death of the principal or the GPA holder. After the Death of the GPA holder that Power of Attorney became inoperative and revoked automatically forever. Besides that even when the GPA holder remains alive, the Owner/Principal always can exercise his/her right to transfer the property in a Registered manner. In the case of a Joint GPA holder, if one attorney dies, the POA becomes infructuous and requires the execution of a fresh GPA by the principal for the surviving attorney. A GPA holder is not authorized to sell the property on behalf of the owner, even if the GPA is registered with the Sub-Regestrar office. A GPA can be revoked at any time even if it is made irrevocable. Moreover, it lapses on the death of the Principal/Grantor. The law does not recognize any irrevocable power unless coupled with an interest. On June 6, 2023, the Supreme Court of India delivered a landmark judgment in the case of Ghanshyam v. Yogendra Rathi on the scope and validity of power of attorney (POA) documents. The Court held that a POA or a Will cannot be recognized as title documents or documents conferring any right in any immovable property. This judgment is significant because it clarifies the legal status of power of attorney documents and its role in the transfer of immovable property. It also puts an end to the common practice of people buying and selling immovable property on the basis of POA documents alone.