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IntroductionThe question of whether a sale through Power of Attorney (PoA) is still valid in India remains a hot topic, especially among NRIs and those handling property transactions remotely. With evolving property laws and significant court rulings like the Suraj Lamp & Industries vs State of Haryana case, it is crucial to understand the current legal standing of PoA in property sales.What is Power of Attorney in Real Estate?A Power of Attorney is a legal document that grants authority to one person (agent) to act on behalf of another (principal) in financial, legal, or property-related matters. In real estate, it enables the agent to sign documents, represent the principal at registration offices, and even complete property transactions.For NRIs, senior citizens, or people living in different cities, using PoA is often a practical solution. But the legality of selling property solely through PoA has undergone major revisions.Supreme Court Verdict: Suraj Lamp CaseIn 2011, the Supreme Court of India ruled in the Suraj Lamp & Industries Pvt. Ltd. vs State of Haryana case that Power of Attorney is not a valid instrument for transferring title in immovable properties. The court held:• Sale of property through PoA does not convey legal ownership.• Only a registered sale deed is considered valid for transferring property title.• PoA can still be used for representational purposes like managing, leasing, or mortgaging property.Is Sale Through Power of Attorney Still Legal in 2025?Yes—but with strict legal conditions.While PoA cannot be a substitute for a sale deed, it remains legally valid when:• It is properly executed, notarised, and registered.• The principal authorises the attorney to execute the registered sale deed.• The final sale transaction is executed through a legally registered sale deed, not just PoA.So, sale through PoA is not invalid, but using PoA as the sole instrument for sale is not legally recognised.Power of Attorney for NRIs: Special ProvisionsFor NRIs, the law permits execution of a Special Power of Attorney at the Indian Embassy or Consulate in the foreign country. The steps include:1. Drafting the PoA clearly defining the powers.2. Signing before a notary or consular officer.3. Sending the document to India for adjudication and registration within the prescribed time.This legally enables the attorney to complete the sale transaction on behalf of the NRI, but the sale deed must still be registered in accordance with Indian law.Risks of Misusing PoA in Property SalesImproper or fraudulent use of PoA can lead to:• Title disputes and litigation• Forgery and impersonation• Legal challenges during resale• Refusal of mutation and municipal approvalsTo avoid these, always seek legal verification, registration, and due diligence.ConclusionTo sum up, a sale through Power of Attorney in India is still valid—but only if it culminates in a properly registered sale deed. The PoA is a facilitator, not a substitute for the sale deed. With courts cracking down on misuse, adhering to legal protocols is critical.At KHA ADVOCATES, we specialise in real estate transactions, PoA drafting, registration, and NRI property services across India. Whether you’re abroad or in India, our expert legal team ensures your property sale is 100% compliant.
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As artificial intelligence continues to reshape industries, it’s also prompting a major reassessment of existing copyright laws. The ongoing OpenAI copyright dispute in the United States has reignited global conversations about the legal boundaries of AI-generated content. India, too, is facing mounting pressure to re-evaluate its copyright framework to address the growing influence of AI in content creation, data usage, and intellectual property (IP) rights.The OpenAI Copyright Dispute: A Brief OverviewThe legal storm surrounding OpenAI primarily concerns how large language models (LLMs), such as ChatGPT, are trained using massive datasets—including copyrighted materials scraped from the internet. News publishers, authors, and digital platforms have raised concerns that AI companies may be violating copyright laws by using their work without consent or compensation. This has led to multiple lawsuits questioning the legality of AI training data and whether AI-generated outputs can infringe on original works.Copyright Law in India: Current GapsIndia’s Copyright Act, 1957 does not yet explicitly address issues around AI-generated content or machine learning datasets. The law recognises authorship in terms of human creativity, leaving a legal vacuum when it comes to non-human creators. Key concerns emerging in the Indian context include:• Ownership of AI-generated content• Fair use of copyrighted data for AI training• Accountability for copyright infringement by AI systems• Moral rights and attribution in the age of automationWith AI tools being widely adopted in India across media, law, education, and business, these gaps in legal clarity present significant risks for creators and developers alike.Global Influence and India’s Legal ReviewAs the OpenAI copyright dispute evolves in the U.S., Indian lawmakers and courts are closely watching international legal trends. The European Union’s AI Act and ongoing litigation in U.S. federal courts offer precedents that could shape India’s legislative responses.India’s Ministry of Electronics and Information Technology (MeitY), along with the Department for Promotion of Industry and Internal Trade (DPIIT), are reportedly reviewing existing IPR and technology frameworks. There is also a growing call from the legal community for new legislation or judicial interpretation that can define:• Who holds copyright over AI-generated works• What constitutes “fair use” in training datasets• Liability frameworks for AI developers and usersThe Road Ahead: Balancing Innovation and IP RightsAs India aspires to be a global AI powerhouse, it must strike a balance between fostering innovation and protecting intellectual property rights. Legal clarity is crucial to attract AI investment while respecting the rights of content creators, researchers, and publishers.
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Repaying a loan is a significant financial milestone. However, the journey doesn’t end with the final payment. Ensuring you collect all pertinent documents post-repayment is crucial to safeguard your financial interests and legal rights. This guide outlines the essential documents you should collect after loan repayment, incorporating the Reserve Bank of India’s (RBI) guidelines and relevant legal considerations.📄 1. No Objection Certificate (NOC)The NOC is a formal declaration from the lender stating that you’ve repaid the loan in full and that there are no outstanding dues. This document is vital as it serves as proof of loan closure and is often required for future financial transactions or legal purposes.🏠 2. Original Property DocumentsIf you’ve taken a secured loan, such as a home loan, the bank would have retained original property documents as collateral. Post-repayment, it’s imperative to retrieve:• Title deeds• Sale agreements• Property tax receipts• Encumbrance certificates These documents are essential for establishing ownership and for any future property transactions.🔓 3. Lien Release LetterA lien is a legal claim or right against a property. Upon loan repayment, the bank should provide a lien release letter, confirming that the lien on your property has been removed. This is crucial for updating property records and ensuring clear ownership. 📑 4. Loan Account StatementRequest a comprehensive loan account statement detailing all transactions, including:• EMI payments• Interest charges• Penalties (if any)• Final settlement details This statement serves as a financial record and can be useful for tax purposes or future financial planning.🧾 5. Post-Dated Cheques (PDCs) and ECS DeactivationIf you’ve provided PDCs or set up Electronic Clearing Service (ECS) mandates for EMI payments, ensure:• Retrieval of any unused PDCs• Deactivation of ECS mandatesThis prevents any unintended debits from your account post-loan closure. 🚗 6. Form 35 (For Vehicle Loans)For vehicle loans, the bank registers a hypothecation on your vehicle’s Registration Certificate (RC). Post-repayment, collect Form 35 and the NOC from the bank to remove the hypothecation from the RC at the Regional Transport Office (RTO).📊 7. Updated Credit ReportAfter loan closure, obtain your credit report from credit bureaus like CIBIL, Experian, or Equifax to ensure:• The loan is marked as ‘Closed’• There are no outstanding duesA clean credit report is essential for maintaining a good credit score and for future loan approvals.🏛️ RBI Guidelines on Document ReturnThe RBI has mandated that banks and Non-Banking Financial Companies (NBFCs) must return all original movable or immovable property documents within 30 days of full loan repayment. Key Points:• Timeline: 30 days from the date of loan closure.• Penalty for Delay: Banks are liable to pay ₹5,000 per day for delays beyond the stipulated period.• Loss or Damage: In case of loss or damage to original documents, banks must assist borrowers in obtaining certified duplicates within 30 days. ⚖️ Legal ConsiderationsIt’s essential to be aware of your legal rights concerning loan closure:• Equity of Redemption: As established in the case of Vernon v Bethell, borrowers have the right to reclaim their property upon full repayment of the loan.• Right to Information: Under the Right to Information Act, borrowers can request information regarding their loan accounts and related documents. ✅ ConclusionCollecting all relevant documents after loan repayment is not just a procedural formality but a crucial step in ensuring your financial and legal security. Adhering to RBI guidelines and understanding your rights can help you navigate this process smoothly.Always maintain both physical and digital copies of these documents for future reference.For more insights on financial management and legal rights, stay tuned to our blog.
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KhA Advocates is a premier law firm in Kolkata, West Bengal known Internationally, providing expert legal services in property registration, corporate law, matrimonial law, taxation, dispute resolution, and more. We offer tailored legal solutions for NRIs, businesses, and residents, ensuring 100% compliance and protection. With our efficient, transparent, and reliable approach, we safeguard your legal interests.