A Power of Attorney (POA) is a legal instrument that allows one person (the grantor) to authorise another (the attorney) to act on their behalf in legal, financial, or property-related matters. For Non-Resident Indians (NRIs), executing a Power of Attorney is a practical and widely used method to manage affairs in India without being physically present. One of the most common questions surrounding this legal tool is: how long is an NRI Power of Attorney valid for?
Understanding the Default Validity of an NRI Power of Attorney
Under Indian law, the validity of a Power of Attorney granted by an NRI is primarily governed by the terms set out in the document itself. If the document does not specify a termination date or a specific task to be completed, then by default, the Power of Attorney is considered to be valid indefinitely. This means it will continue to remain legally effective:
- Until the grantor (executant) revokes the Power of Attorney
- Until the death or legal incapacity of the grantor
- Or until the attorney renounces the authority granted
This position is supported by the Indian legal principle that a POA, unless restricted by time or purpose, continues to remain in force until legally terminated by one of the above events.
When a Power of Attorney is Time-Bound or Purpose-Specific
A Power of Attorney may expressly include a specific end date or may be drafted to serve a particular purpose, such as the sale of a specific property or representation in a court case. In such instances, the POA:
- Expires automatically on the completion of the task if specified as such in the document
- Or ceases to be valid after the expiry date mentioned
For example, if an NRI grants a Power of Attorney to their sibling for the sale of a property in Delhi, and the document states that the POA shall be valid “for a period of 12 months from the date of execution”, the authority ends either on the date of expiry.
It is essential that the wording of the POA is clear and unambiguous regarding its scope and duration to prevent misuse or disputes later.
Revocation of a Power of Attorney by the NRI Grantor
Even if a Power of Attorney is drafted without a fixed timeline, the grantor retains the right to revoke the document at any time, provided they are mentally competent. Revocation must be done through a formal written deed, and where the POA has been registered, a registered Deed of Revocation should be executed.
To ensure that the revocation is legally effective, it must be:
- Notified to the attorney in writing
- Communicated to third parties who might be relying on the Power of Attorney
- Publicised (if necessary) in local newspapers or through public notice, especially where immovable property is involved
Failure to follow this process may lead to the attorney continuing to act in good faith, and such acts may still bind the grantor under Indian law.
Termination of Power of Attorney by Operation of Law
In certain cases, a Power of Attorney will automatically terminate without the need for express revocation. This happens when:
- The grantor dies or becomes mentally incapacitated
- The attorney dies or becomes mentally incapacitated
Practical Considerations for NRIs Executing a Power of Attorney
To avoid legal and administrative complications, NRIs should ensure that the Power of Attorney they execute:
- Clearly states the scope of powers granted
- Specifies the duration or purpose of the POA where necessary
- Is notarised and attested according to the laws of the country in which it is signed
- Is registered in India, where it involves immovable property
Where the Power of Attorney is executed abroad, such as in the UK, USA, or UAE, it must be processed locally before it can be used in India. Once received in India, it should be registered with the relevant authorities to validate the POA document.
In summary, unless a specific validity period or purpose is mentioned in the Power of Attorney, an NRI-executed POA will remain valid indefinitely. It continues to have legal force until it is revoked by the grantor, the task is completed, or the grantor passes away. To ensure proper use and avoid misuse, it is always advisable to seek professional advice when drafting or revoking a POA, especially when property or financial matters are involved.
For tailored advice on drafting or revoking an NRI Power of Attorney, please contact our professional team for assistance on 0208 757 5751 or use our contact form.
