NRI Property in India: Power of Attorney, Disputes and Practical Safeguards

Why NRIs face particular risks

Property left unattended for long periods is vulnerable to encroachment, unauthorised sale and family disputes. Distance also makes it harder to attend court dates and government offices.

Executing a power of attorney abroad

A power of attorney executed outside India is usually attested before an Indian Embassy or Consulate, or notarised and apostilled in countries that are party to the Hague Apostille Convention. Once received in India, it generally must be presented for stamping within three months under stamp law.

• Specify exactly what the attorney may do — a general wording invites misuse
• Prefer a special power of attorney for a single transaction
• Keep the original safe and register it where the law requires

A power of attorney is not a sale

In Suraj Lamp & Industries v. State of Haryana (2011), the Supreme Court held that transfers by way of general power of attorney, agreement to sell or will do not convey title to immovable property. Ownership passes through a registered sale deed.

Safeguards for your property

• Keep mutation and jamabandi records updated in your name
• Obtain certified copies of title documents and store them digitally
• Pay land revenue and taxes and keep receipts
• Have a trusted person or advocate check the property periodically

If a dispute arises

Encroachment, partition or title disputes may need civil proceedings, and in some cases a criminal complaint. Much of the work — documentation, drafting and updates — can be handled remotely, with personal attendance only where unavoidable.