A Legal Analysis Of The Misuse Of Power Of Attorney In Property Transfer In India.
Thomas Erick Royston, St. Joseph's College of Law
ABSTRACT
This research paper provides a comprehensive legal analysis of the widespread Misuse of the Power of Attorney (PoA) as a deceptive proxy instrument for property transfers within the Indian real estate market. Historically conceptualized as an administrative tool of convenience rooted in the law of agency, the General Power of Attorney (GPA) frequently executed alongside an Agreement to Sell, an affidavit, or a Will (collectively termed “SA/GPA/Will transactions”) has structurally mutated into a widespread mechanism to facilitate illicit property title transfers. This deceptive framework is primarily deployed by transacting parties to evade compulsory registration fess, circumvent heavy stamp duties, bypass capital gains taxation, and invest unaccounted wealth.
By analyzing the interconnected statutory architectures of the Transfer of Property Act, 1882, the Registration Act, 1908, and the Indian Contract Act, 1872, alongside overarching international proprietary protections, this paper evaluates the systemic legal vulnerabilities exploited by fraudulent agents. Special focus is directed toward landmark judicial interventions, tracking the evolution of property jurisprudence from the seminal division bench ruling in Suraj Lamp & Industries Pvt. Ltd. v. State of Haryana (2011) to the contemporary Supreme Court pronouncement in Ramesh Chand (D) v. Suresh Chand (2025). These milestones firmly establish that a PoA transfers no inherent title or interest in immovable property. Finally, the study examines persisting loopholes—such as the manipulation of irrevocable clauses and post-demise execution fraud—and offers structural suggestions, including integrated national digital registries and automated vital statistics verification, to enforce institutional transparency and secure land titles.
Keywords: Power of Attorney (PoA), Property Transfer, Conveyance Deed, Registration, Suraj Lamp Case, Fiduciary Duty, GPA Sales.
