Power of Attorney can be given only to blood relatives

Not neccasrily it should be given only to relatives it can be given to any third party also.

Power of attorney can be given to blood relative also. Infact it can be given to any person who is competent.

MY Opinion :

POA, can be given to blood relatives, non-blood-relatives, neighbours, friends, ministers, beggers, lepers or who so ever,   - BUT -  should be an Indian citizen   AND SHOULD NECESSARILY BE LEGALLY CAPABLE AS DEFINED UNDER THE CONTRACT ACT.

Otherwise the POA is  "null & void" in the eyes of law.

Keep Smiling .... Hemant Agarwal

No in case of Mumbai, it's not necessary that POA is admissible in blood relations but in delhi now the legislature has made it mandatory that it be given in blood relations only, just to prevent evasion of Stamp Duty.

 Yes, It depend upon the nature of the Power of Attorney. If power of attorney holder is other that relative you have to pay the stamp duty upon the same as applicable to the Sale Deed or Development Agreement or you are relative of the person you have to pay only Rs. 500 stamp duty upon the same.  

Chapter X of the Indian Contract Act, 1872 (sections 182 to 238) make provision for contracts of agency (authorising someone through power of attorney) which do not restrict appointment of power of attorney to blood relation only.

No such restrictions...It can executed in favour of any one who is competent to enter into a contract[Indian contract Act]

Can Power of Attorney to sell a property be given in favor of Sister's Son.- Can he be considered Relative. can this be given on 500 Rs Stamp paper

No as per the act sister's son cannot be a relative for this purpose

Which Act?

I agree with reply of Mr. Pramod regarding stamp duty and power of attorney should be executed accordingly. In general POA can be given to any person, but the stamp duty charges will come into play depending upon the purpose of the POA.

no not necessary

Power of Attorney can be given to any person who is competent to enter into contract

It is true that a power of attorney can be given to any person who has a contractual capacity. But if a person who does not have contractual capacity (unsound mind/slow learner/mentally retared) can give power of attorney to another person who has contractual capacity. It is because parents of unsound mind have generated assets in the name of unsound minded person. In future when parents are not there how to manage the assets of unsound minded person.

What is the best mode/solution of managing the assets of a person who does not have contractual capacity. Whether power of attorney or a trust? If trust which trust?