1. In most of the Idian states there is a requirement that if a POA contains a power to sell then it has to be fully stamped and registered
2. That could be the reason why the registrar is not accepting the POA
3. The alternative is as follows -
A. Get the sale deed prepared by a competent lawyer
B. Also have a GPOA containing a clause that the constituted attorney can comply with registration formalities on your behalf. You can use the existing power of attorney if it has this clause already. It must have it
C. Then the sale deed can be emailed to you
D. Take print of the same on green ledger paper or normal white paper if you cannot get ledger size paper
E. Sign the sale deed before the consulate or embassy
F. Then courier the signed sale deed to your constituted attorney
G. She can then use the GPOA to present the signed sale deed to the registrar and admit execution ie verify your signature, before him and complete the registration formalities
H. The POA can give power to the attorney to accept consideration in your behalf and she can then remit the same to you by normal banking channels
I. Or you can open a NRO account online from US in any Indian bank and direct the buyer to deposit the money in this NRO account and later on you can transfer the amount from the NRO account to your US account through online banking
J. Also note that the buyer will deduct 20% TDS or tax deducted at source from the sale price and pay you the balance
K. The tax deducted and deposited by buyer with government can then be claimed as refund by you if there was any excess tax payment which was greater than your capital gains tax liability
L. For above you can take assistance of a competent CA who can file IT returns for you and claim refund of amount paid in excess of your CGT liability