SBI and PoA

I would further like to draw your attention to the following:

It has come to the notice of the Government that on the strength of unregistered General Power of Attorney, Khatas are being changed in favour of General Power of Attorney-holders Instances have also come to the notice of Government wherein agricultural lands have been converted for non-agricultural purposes in favour G.P.A. holders. This has resulted in land records being created in favour of G.P.A. holders, who have acquired any right in the lands.
This issue has been examined in depth by the Law department and their considered opinion as follows;

"Section 17 of the Registration Act, 1908, (Central Act 16 of 1908) provides that the documents which have to be compulsorily registered. Clause(b) of the said Section is as follows;
"(b) Other non-testamentary instruments which purport to create, declare, assign, limit or extinguish, whether inpresent 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 ";

"Karnataka Stamps Act, 1957, defines power of attorney as follows;

"(P) " power-of-attorney "includes any instrument (non-chargeable with a fee under the law relating to Court fees for the time being in force) empowering a specified person to Act for and in the name of the person executing it".

Thus, the Power of Attorney is an instrument and when it purports to create, declare or assign etc., any right or interest in respect of any immovable property it is to be compulsorily registered under Section 17 of the Registration Act. The Revenue Officers, whenever an application is made by any person holding P.A., should actually look into the contents of the P.A. If it creates any right or interest in immovable property they should invariably ask P.A. holder to register the said document under Registration ACT. By virtue of the above referred decision and Section 17 of the Registration Act, such documents have to be registered; non-registration of document will be void and unenforceable.
 

The following is a relevant extract from a GO issued by the government. Hope it clears all your mis conceptions about POA

Hi Vishal, Your last post is not relevant and is with reference to revenue department - So your quote is out of context with reference to my original problem statement

To be a bit pedantic here, section 18 of the act states

18. Documents of which registration is optional
Any of the following documents may be registered under this Act, namely:-

(a) instruments (other than instruments of gift and wills) 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 a value less than one hundred rupees, to or in immovable property;

I have attached a sample PoA from LICHF for your perusal that clearly states norms on PoA. (Refer to #4 for PoA exeucted in India) You can easily find PoA of other nationalised banks like PNB, Canara Bank etc on their requirements from the web or from any of their branches if you want to pursue it any further

Moreover the requirement provided by SBI to us on paper states a notarised PoA will suffice. So the processing officer getting a "Eureka moment" at the last moment is simply not tenable.

My points are very straight - a) SBI should not have invited the holder of PoA to execute the documents if they are not sure of their stand. It is important to understand people working in private sector do not have the luxury of time b) 4 weeks of processing time is just not acceptable and highlights the inefficiency on their part c) All the relevant documentation required by SBI has been provided and as a matter of fact SBI are happy with it and no concerns have been flagged by them. There is no point, picking up on some flimsy ground

Bottomline

 I, for one, being a law abiding citizen am with all sensible processes that will minimise fraud causing loss to the exchequer. So other than providing food for thought/employment to legal professionals in my view it is important to apply some common sense and treat the law abiding, tax paying customer fairly. Basic biz acumen demands that having a good product needs to be supplemented by end to end customer service and build cutomer loyalty! The moot point here though is fairness

Extract from LIC HF legal doc

INSTRUCTIONS

Srinivasan

The above post viz GO might be irrelevant in your context but the purpose of the extract and essence is the definition, interpretation & legistative intent.

"Section 17 of the Registration Act, 1908, (Central Act 16 of 1908) provides that the documents which have to be compulsorily registered. Clause(b) of the said Section is as follows;
"(b) Other non-testamentary instruments which purport to create, declare, assign, limit or extinguish, whether inpresent 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 ";

"Karnataka Stamps Act, 1957, defines power of attorney as follows;

"(P) " power-of-attorney "includes any instrument (non-chargeable with a fee under the law relating to Court fees for the time being in force) empowering a specified person to Act for and in the name of the person executing it".

Thus, the Power of Attorney is an instrument and when it purports to create, declare or assign etc., any right or interest in respect of any immovable property it is to be compulsorily registered under Section 17 of the Registration Act.

I am an NRI residing in Belgium and have applied for a home loan with SBI, Noida Branch, India.  Need to undertake a POA in the name of a friend to execute all the paper work after Loan sanction.  Have downloaded the format of POA from the SBI website. Can you pl guide me, if the POA needs to be executed on an Indian Stamp paper and if so what denomination or it is to  be executed on Plain paper. Do I need to get it Notorised in Belgium /legalised by embassy?

to whom i can include as GPA(General Power Of  attorney) ? can i include my married sister or brother in law or close friend ?