Power of attorney (property) is a legal instrument by which a property owner (the principal) authorises another person (the agent or attorney) to act on their behalf in relation to specified property transactions, such as selling, purchasing, mortgaging, leasing, or managing immovable property. Under Indian law, the power of attorney is governed by the Power of Attorney Act, 1882, with the critical limitation — established by the Supreme Court in Suraj Lamp (2012) — that a power of attorney cannot itself be used as an instrument of property transfer.
Legal definition
The Power of Attorney Act, 1882, Section 1A (inserted by amendment) provides:
Section 1A: The expression "power-of-attorney" means any instrument empowering a specified person to act for and in the name of the person executing it.
The Indian Contract Act, 1872, Chapter X (Sections 182-238) governs the broader agency relationship between the principal and the agent. The power of attorney is the specific instrument that creates this authority for property-related transactions.
Two principal categories:
- General Power of Attorney (GPA): Authorises the agent to perform a wide range of acts on behalf of the principal — including selling, purchasing, mortgaging, leasing, and managing multiple properties. A GPA is comprehensive and continues until revoked.
- Special Power of Attorney (SPA): Authorises the agent to perform a specific act or transaction — such as selling a particular property, executing a particular mortgage, or appearing in a specific legal proceeding. The authority expires upon completion of the specified act.
Registration requirements: Under Section 17(1)(b) of the Registration Act, 1908, a power of attorney that itself creates, declares, or extinguishes any right in immovable property must be compulsorily registered. A power of attorney that merely authorises the agent to execute a separate registered instrument (sale deed, mortgage deed) need not be registered but must be authenticated — either notarised, or if executed outside India, attested by an Indian consular officer.
How courts have interpreted this term
The Supreme Court has decisively shaped the law on powers of attorney in property transactions.
Suraj Lamp & Industries Pvt. Ltd. v. State of Haryana [(2012) 1 SCC 656]
This landmark decision declared that property transfers through General Power of Attorney, sale agreements, and affidavits — the so-called "GPA sales" — are not legal and valid modes of transfer. The Court held that immovable property can only be lawfully transferred through a registered sale deed under Section 54 of the Transfer of Property Act. A GPA is merely an authorisation to act — it is not an instrument of transfer. The Court observed that GPA sales had become rampant in Delhi-NCR and other cities, primarily to evade stamp duty, and directed that such practices must cease. The Court clarified that GPA holders can execute a registered sale deed on behalf of the principal but cannot claim title through the GPA itself.
Raghunath Saran Charitable Trust v. Bunny Gupta [(2014)]
The Delhi High Court, applying the Suraj Lamp principles, held that a GPA holder who has been in possession of property cannot claim adverse possession based on possession derived from the GPA. The Court held that the GPA holder's possession is on behalf of the principal, not in their own right, and therefore lacks the "hostile" character required for adverse possession.
Smt. Kavita Trehan v. Balsara Hygiene Products [(1995)]
The Supreme Court held that a power of attorney executed for consideration (i.e., an irrevocable power of attorney coupled with interest) cannot be unilaterally revoked by the principal. Under Section 202 of the Indian Contract Act, where the agent has an interest in the subject matter, the agency cannot be terminated to the prejudice of the agent's interest.
Why this matters
The power of attorney is one of the most commonly used legal instruments in Indian property practice. NRI property owners routinely grant GPA or SPA to relatives in India to manage, sell, or lease their properties. Joint property owners use SPAs to authorise one co-owner to execute transactions. Elderly or incapacitated property owners grant powers of attorney to children or trusted persons to handle property affairs on their behalf.
The Suraj Lamp decision fundamentally changed property practice in India. Before 2012, "GPA sales" were common — particularly in Delhi, Haryana, and parts of Uttar Pradesh — where property was transferred through a GPA + Agreement to Sell + Affidavit, often to save on stamp duty and registration charges. The Supreme Court's declaration that such transfers are invalid exposed millions of property transactions to legal challenge. Anyone who purchased property through a GPA sale before 2012 should regularise the transaction by executing a registered sale deed.
For practitioners, several practical points are critical. First, always verify that the power of attorney is valid — check whether it has been duly notarised or registered, whether the principal was competent at the time of execution, and whether the authority covers the specific transaction. Second, a power of attorney is revocable at any time unless it is coupled with interest (Section 202, Indian Contract Act). Death of the principal automatically terminates the power of attorney. Third, banks increasingly insist on the original power of attorney (not a photocopy) and may require independent verification before accepting GPA-based transactions.
Related terms
Related to property transfers:
Related costs and charges:
Frequently asked questions
Can property be sold through a power of attorney in India?
A power of attorney holder can execute a registered sale deed on behalf of the principal — but the GPA itself is not a valid instrument of transfer. The Supreme Court in Suraj Lamp (2012) definitively held that "GPA sales" (transfer through GPA + agreement + affidavit without a registered sale deed) are not legally valid. The property must be transferred through a registered sale deed, which the GPA holder can sign on the principal's behalf.
Does a power of attorney for property need to be registered?
If the power of attorney itself creates or extinguishes any right in immovable property, it must be compulsorily registered under Section 17 of the Registration Act. If it merely authorises the agent to execute separate registered instruments, registration is not mandatory but notarisation is required. For GPA executed outside India, attestation by an Indian consular officer is mandatory.
Can a power of attorney be revoked?
Yes. Under Section 201 of the Indian Contract Act, a principal may revoke the authority of the agent at any time before the agent has exercised the authority. However, under Section 202, if the agency is coupled with interest — meaning the agent has paid consideration for the power or has a personal interest in the subject matter — the power cannot be unilaterally revoked by the principal.
What happens to a power of attorney if the principal dies?
Under Section 201 of the Indian Contract Act, an agency is terminated by the death of the principal. Any act performed by the agent after the principal's death (without knowledge of the death) may be valid as against third parties who dealt in good faith. However, once death is known, the GPA holder has no authority to act, and any subsequent transaction is void.
This entry is part of the Veritect Indian Legal Glossary, a comprehensive reference of Indian legal terminology grounded in statutory text and judicial interpretation.
Last updated: 2026-03-27. Veritect provides this content for informational purposes and does not constitute legal advice.