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Srinivasan (Financial Services)     14 January 2010

SBI and PoA

I have applied for a home loan from State Bank of India and have given my brother a power of attorney (PoA) in bank's format for home loan processing. The PoA for this specific purpose has been notarised as per their requirement. As I'm not in the country  my brother took time off from his hectic schedule today and went to sign the home loan documents at the SBI office. He was told PoA needs to be registered as well (This too after taking almost Rs 9100 in franking charges! and all the documents being with them for the last 4 weeks)

It looks to be a blatant contravention of the registration act and also the sbi's own guidelines.(Links below)

We have tried to put forth the logic/rationale with the SBI sanctioning official(s) but in vain.
It looks like different SBI branches are run on the whims and fancies of officials and they have different yardsticks for loan disbursal to different people.

Please could somebody in the forum let me know if this is in accordance with the law? What are my legal/civil rights - In case I decide not to avail the home loan from SBI can I get a refund of the processing/franking charges?( along with any damages, should I decide to claim)

Thanks in advance


 19 Replies

R.R. KRISHNAA (Legal Manager)     14 January 2010

Registration of POA is permitted either by registration or by notarisation.  Validity of a notarised POA is as good as registrated POA.  But nowadays many people involve in fraud by using the system of notary and thus results in problems.  To avoid such fraud, public/private organizations nowadays insist for registration of documents (POA).  Hence it is not wrong on the part of SBI to insist for a registered POA.  It is only for authenticity and safety purposes.

aruntrivedi (lawyer)     14 January 2010

None is wrong - I am advocate for SBI some time it comes to know subsequently that it requires registration. Do not worry go on comply quarry of SBI officials you will get loan. So far I have experience there are no different yardsticks no descrimination nor any favourisms to any body irrespective of cast, creed, citizenships or gender. Yeh apna Bank Hai

aruntrivedi (lawyer)     14 January 2010

You can get refund of processing fee in case when loan is not sanctioned processing fee, advocate fee and valuation fees are refunded by SBI and if loan is sanctioned these expenses are included in value of your premises including Sale Deed Registration, Stamping, mortgage registration charges - no hidden charges in SBI no hardships no guarantors simply you comply quarries and you will get loan - yeh apna hi to hai.

Mrs. Hetal Sunil Shah (Advocate)     14 January 2010

arunji is right - am also of same opinion - am also advocate for SBI - why do you think so revengefully - do not take any hasty hafty decisions. None SBI Official have any personal grudge for you. If you are further facing problem send email complaint to AGM or contact RACPC AGM or Chief Manager or even you can contact DGM - CHIEF GENERAL MANAGER [CGM] SBI of your region-zonal office. If you are in gujarat contact me I shall help you and enable you to complete process as fast as it can be done.

1 Like

A V Vishal (Advocate)     14 January 2010

Mr Srinivasan,

I can understand your anguish, but the POA executed outside the country needs to be registered compulsarily in India to obtain legality. The bankers are not contravening the provisions of the registration act infact they are guiding you on the right path. The registration act contains the provision to register the document which is executed outside the country. However the charges as told by you are not so high, if you have executed the POA in favour of your brother then the stamp duty and registration charges are around 1200 rupees, regarding 9100 there is some miscommunication obviously the fact that the POA is executed in favour of brother is not conveyed properly to whomsoever has given you that figure.

1 Like

A V Vishal (Advocate)     14 January 2010

A small correction read the word registered as stamped under the Indian stamps Act

aruntrivedi (lawyer)     14 January 2010

there are charges of Rs. 2000 for processing fee, Rs. 1500 for advocate fee and Rs. 750/- for valuation of property Rs. 5000/- + Rs. 500/- towards mortgage stamping and Rs. 500/- for Registration of mortgage and some other expenses for gtg index-II of mortgage registration from Registrar of Assurances Office. Where are hidden charges??

Srinivasan (Financial Services)     14 January 2010

Vishal - The PoA was executed in Mumbai India

Krishnaa, Trivediji and Mrs Shah - From a very fine legal perspective I can see your point. Also your point on SBI's value proposition is well made  and I'm not contesting it (In fact that is precisely the reason we went for SBI vis-a-vis their competitiors)

As I see there are couple of issues - 

a) Nowhere in the SBI website or offical document requirements is it mentioned that POA has to be registered - I had personally revalidated this all the concerned SBI officals  At that time they had categorically stated that PoA just needs to be notarised. So there are issues around communication and reality v/s myth 

b)  I think they should have called my brother to sign the documents only after the documentation (that included true copy of PoA) was verified

Mrs.Shah - Possibly my tone indicates the frustration of having to wait a month whereas in theory the SBI sanction should have come through in 6 good business days.

Anyway I have been just informed that SBI will consider my case and there is a very good chance that they will make an "exception" in this instance - As they say "all is well that ends well". We shall wait and see

Really appreciate tour time and all the feedback

Best Regards,

A V Vishal (Advocate)     14 January 2010


Refer S 33.Power-of-attorney recognisable for purposes of section 32
(1) For the purposes of section 32, the following powers-of-attorney shall alone be recognised, namely:-

(a) if the principal at the time of executing the power-of-attorney resides in any part of 18[India] in which this Act is for the time being in force, a power-of-attorney executed before and authenticated by the Registrar or Sub-Registrar within whose district or sub-district the principal resides;

(b) if the principal at the time aforesaid 25[resides in any part of India in which this Act is not in force], a power-of-attorney executed before and authenticated by any Magistrate;


Further, S.32. states who are the Persons to present documents for registration.- Except in the cases mentioned in sections 31, 88 and 89, every documents to be registered under this Act, whether such registration be compulsory or optional, shall be presented at the proper registration office, -


(a) by some person executing or claiming under the same or, in the case a copy of a decree or order, claiming under the decree or order, or

(b) by the representative or assign of such person, or

(c) by the agent of such person, representative or assign, duly authorised by power of attorney executed and authenticated in manner hereinafter mentioned.

Although, the POA was executed by you at Mumbai, by virtue of the aforesaid provisions of the Registration Act, the POA had to be registered, please note that nowhere is it mentioned that mere notarization is sufficient. Further my first reply was based on the fact that you have mentioned that you executed a POA but the query did not have a mention where it was executed and further it is stated by you that you are out of country hence I assumed that the POA was executed outside India on which I based my reply.



When myself and my friend applied for home loan in UBI.  We had to get the PoA registered in the main registrar office in Chennai and it took more than a month for the things to come through.  Due to recession and increasing number of frauds, I think you can just comply with this matter and go ahead with loan process.




aruntrivedi (lawyer)     15 January 2010

thanks vishal bringing all provisions of POA Act and other provisions - no body should be so impatient.

Srinivasan (Financial Services)     15 January 2010


FYI  - I have spoken with my lawyer who unequivocally has stated that sections 17 and 18 of the registration act clearly govern my particular case. The sections you have quoted come into play if any tangible benefit is derived - As per CA 1956, the onus is on the corporation(s) to be unambiguous and state the facts very clearly. Anyway thanks for your feedback

Mr.Trivedi, Based on your last remark I must say that it is in patronising tone (that is not well recieved by me!) and may I add you are being judgemental oblivious to the facts of my case or for that matter SBI's own internal guidelines. Assuming your good credentials, may I urge you to you keep an open mind and try to use your good office(i.e. of course if you want) and make an attempt to improve/streamline  the efficiency and transparency of SBI. As it stands there is no shortage of (nationalised) banks willing to lend to credible individuals without any bureaucratic hassles (on flimsy grounds). Without globalisation I dread to imagine the state of affairs for a perfectly law-abiding citizen -Wish you all the best!

A V Vishal (Advocate)     15 January 2010


Even going by your advocate's statement that your case is governed by s.17 & 18, let me draw your attention to s.17. Documents of which registration is compulsory
(1) The following documents shall be registered, if the property to which they relate is situate in a district in which, and if they have been executed on or after the date on which, Act No. XVI of 1864, or the Indian Registration Act, 1866, or the Indian Registration Act, 1871, or the Indian Registration Act, 1877 or this Act came or comes into force, namely:-

(a) instruments of gift of immovable property;

(b) other non-testamentary instruments which purport or operate to create, declare, assign, limit or extinguish, whether in present or in future, any right, title or interest, whether vested or contingent, of the value of one hundred rupees, and upwards, to or in immovable property;

A V Vishal (Advocate)     15 January 2010

Further to my earlier post I wish to draw your attention that The Indian Registration Act does not list a Power of Attorney as a compulsorily registerable document. However, it states that if a power of attorney holder presents a document for registration as an agent of another, then it should have been authenticated. This means that the executants should have got the power of attorney authenticated (there is hardly any difference between authentication and registration for practical purposes) in the sub registrar’s office, which has jurisdiction over where he resides.


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