General power against special power
A general power of attorney authorises the holder to act broadly across a wide range of matters, which can be convenient but also exposes the person granting it to the risk that the holder does something well beyond what was actually intended. A special power of attorney, limited to specific, named acts, such as signing a particular sale deed or representing the client in a particular proceeding, is narrower and correspondingly safer. For most NRI purposes, from selling a single property to managing a specific bank account, a special power drafted for that purpose alone is the better choice, even though it takes slightly more care to prepare than a generic form.
Executing the document from outside India
A power of attorney executed outside India needs to be authenticated in one of two broad ways. The preferred route, where available, is execution before the Indian embassy or consulate in the country where the client is based, which the receiving authorities in India generally accept without further formality. Where that is not practical, the alternative is notarisation before a local notary followed by an apostille, a certification recognised between countries that are party to the Hague Apostille Convention, confirming the notary's authority. Which route applies depends on the client's country of residence and its relationship to the apostille framework.
Stamping and, where relevant, registration
A power of attorney executed abroad and brought into or received in India is generally required to be adjudicated and stamped within three months of its receipt in India, and using it without doing so can create difficulty later, including at the point a bank or registrar is asked to act on it. Where the power of attorney deals with immovable property, in particular where it authorises the sale of property, it will usually also need to be registered at the office of the sub-registrar having jurisdiction over that property, a separate step from stamping.
Revoking a power that is no longer wanted
A power of attorney can be revoked at any time by the person who granted it, but revocation only protects that person once it is properly communicated. A revocation deed should be executed with the same formality as the original document, and, importantly, notice of the revocation should be given to anyone who is likely to deal with the holder, including banks, registrars and the other party to any pending transaction, since a third party who deals with the holder in good faith and without notice of the revocation may still be protected.
