How to Give Legal Power of Attorney in India

Many of immigrants residing in the USA from India have to manage their investments in India, while they are in the USA. This has remained a very difficult aspect for me, right from the beginning when I shifted to the USA before around 4 years. My investments in India need to be renewed or reinvested based on the optimum interest gain on and off during my stay in the USA. The only way to tackle this problem effectively and profitably is to give suitable power of attorney to your trusted relative or friend who can handle all your investments, as the repetitive periodical visits to India can prove very expensive. I have given the power of attorney to one of my close friends in India and have been able to enjoy the good return in terms of interest rates on my investments.

I am going to cover the legal procedure to give this power of attorney in India. The first and foremost aspect is that both the parties, the one giving the power of attorney and the one on whose favor power of attorney is to be made, have to remain physically present in India. The deed of power of attorney is to be executed on the non judicial stamp paper valuing to Rs.100. Such stamp papers can be easily available from any local legal establishments like courts, government offices etc. from the stamp vendors sitting in that area. The person giving the power of attorney has to purchase the stamp paper in his exact name and the address of his residence. The purchaser of the stamp paper would also need to sign in the record register, maintained by the stamp vendor. Once the stamp papers are available, you will need to get the legal deed typed on the stamp paper. The standard legal drafts are available with any lawyer, practicing law in India. Make sure to get the deed typed very carefully without any mistakes on the stamp paper. Ensure that the names typed in the deed are the exact names of both the parties. As soon as the deed is ready, ask your lawyer to arrange for the final execution of the deed in presence of a registered Notary/Magistrate, who is stationed in the court of your city or town. You will have to approach them with the person whom you are going to give the power of attorney. Both the parties must carry their photo identities with their proof of the address. The electricity bills, telephone bills, ration card issued by the government, passport, and the PAN card issued by the income tax authorities of India are some of the documents, which are acceptable in the legal court.

Both the parties will need to sign and execute the deed in presence of the Notary/Magistrate, who may ask both the parties that they are willing to undertake such deed without any external pressure of any kind. The deed can also be executed for the specific time limit and even for some special single purpose also. The notary/Magistrate would put his legal, official stamp on the deed after both the parties and the lawyer signs the deed. At this time, the power of attorney becomes legally valid. It is also suggested to make around 3 Xerox copies of the deed and get them certified by the same Notary/Magistrate so as to save time and money. You will need to pay charges of around Rs.400 ($10) to the Notary/Magistrate for executing the deed. The person getting the power of attorney has to keep original deed, while the individual giving the power of attorney may keep the Xerox copy.

This document would entitle the person receiving the power of attorney to make all the financial commitments in banks, financial institutions, post offices, stock market etc on behalf of the individual giving the power of attorney. This document is very important and the person receiving it can take legal possession of all your investments and the properties. Hence, one must very carefully think about giving such power of attorney only to very trustable person and not to any Tom, Dick, and Harry.

I hope that this article shall prove very useful to all my friends who have migrated from India in managing all their investments efficiently and profitably.