Is Sale Through Power of Attorney Still Valid in India?

Introduction

The 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 Case

In 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 Provisions

For 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 Sales

Improper or fraudulent use of PoA can lead to:

• Title disputes and litigation

• Forgery and impersonation

• Legal challenges during resale

• Refusal of mutation and municipal approvals

To avoid these, always seek legal verification, registration, and due diligence.

Conclusion

To 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.