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Balaji Sridharan (Manager)     15 February 2012

Caught in power of attorney

Hi ,

My uncle got a land for construction of flats putting all his investment and gave the Power of Attorney (PoA) to his friend( who has not done any investment) on the belief of friendship . But now when my uncle wants to register the land on his own name the friend is not intersted in the registration and instead the friend  is coming ahead with plans of construction of flats.

To come out of this my uncle is up with an agreement of distribution of returns at the end of the project.


Please let me know if  registration of the agreement can be done ? or the agreement on the stamped paper has to be signed by some public notary etc ,so that  in case of any dispute the agreement could be produced as evidence.


Please answer asap.






 4 Replies

Ashok Yadav (Lawyer)     17 February 2012

Your question is not clear mr. balaji,

1).  if only POA is given by your uncle he can revoke the POA at any time and his friend can not compell him to do any act, and also can not do any act on your uncles behalf.

2). If ur uncle is onwer of land and his friend is POA holder then there is no need to get documents regd. in his ur uncles name. (if the land is not transfered in ur uncles name and he has obtained POA from previous seller in his friends name then its a problem, but if the previous seller is ready to help your uncle he can regd. the sale deed in your uncles name now, there is no hurdle.

3). Which type of agreement you want to execute with his friend, if he is not the owner tehre is no need to enter into agreement with him.


Its an difficult issue take care while execute any agreement or enter into any agreement with any person, you should contact any advocate personaly and take his help it will better for you.

k.chandrasekharan (advocate)     18 February 2012

The following are to be mentioned in detail to elicit a proper answer:

1.'got a land' what does it mean

2. 'for construction of flats'-who instructed or authorised, or whose decision it was.

3.whether due permission from planning authorities obtained.

4. What are the clauses in the POA ? whether revocable or irrevocable? whether registered if so required by the law of the state? whether proper stamp duty paid as per the stamp act of the state?

5. Why he 'wants to register the land in his own name' when he already 'got' it?

6. .coming ahead' what does it mean?

7.Why should your uncle seek short-cut and short term solution by  'up with an agreement for distribution of returns', which terminology itself is totally unclear and having no precision of meaning?

8. In whose name the property stands registered as owner and in whose possession it is presently? If possession is not with the owner whether such transfer of possession is by way of a document, in compliance with extant law of the state?

Seeking answer to end question about 'registration of such agreement' without the nature of the agreement itself being unclear, may not be fruitful.

Balaji Sridharan (Manager)     18 February 2012

Thanks Mr Ashok Yadav and Chandrashekar for replying.

And Mr Chandrashekar please find the required details below:

  1. ' got a land ' means  my uncle has paid the full amount to the land owner but instead of registering the land in his name he let his friend to get the power of attorney of that land .
  2. My uncle purchased the land for the purpose of construction of flats as my uncle is builder by proffesion
  3. Yes , proper approvals has been taken from the planning authorities.
  4. It is Power of Attorney having the full rights . Yes it has been duly registered in the registration office.
  5. My uncle paid for the property  but has not got  it registered on his name.
  6. As my uncle's friend helped or acted as a mediatator in purchasing the land with the aim of constructing flats, so instead of registering the property on my uncle's name , he is asking my uncle to go ahead with the construction taking him also as a partner.
  7. Shortcut  remarked  above -is to get into a dealing with his friend making him as a partner in the construction of the flats to avoid tensions.
  8. The property stands registered on the previous land owners name only.


Hope the above would help you to answer .

k.chandrasekharan (advocate)     07 March 2012

This is a typical case when people don't want to pay the dues to the government, what is due, and circumvent the provisions of Transfer of Property Act and later on come into problems.

Power of Attorney is valid as long as the principal or the attorney is alive. If either dies, it gets ended, whether registered or not. also, if it is not mentioned as 'irrevocable', then the owner has got option to cancel it anytime, with notice. Often sellers get into greed, due to escalation of property prices and try as many devious methods as possible to resile from the commitment.

What is not stated is whether the POA ia also accompanied by an agreement of sale or joint development agreement.

The investor being anonymous in the transaction has to face treachery from all sides.

So, the best possible thing under the circumstances is:

Form a partnership with the POA holder with neat and unambiguous clauses for a joint development of the property, complete construction as quickly as possible, sell the flats and share the profits. This agreement should clearly mention the amount invested by each party, including the investment already made.There would still be disputes, if any unaccounted money transactions take place during sales of flats. Any legal action inter se the partners will be on accounted money basis only.

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