Under whose possession is the property now?

Well to explain point wise:

He first gave a power of attorney to his nephew in 2002 because he is unmarried and had no time to maintain the building. In 2008, he again made a settlement deed in favor of his brother ( the nephew 's father) because some other person was harassing my friend then -

By the above the legal position is that the power of attorney given by your friend to his nephew in the year 2002 automatically stands revoked once the property of the POA was disposed by your friend himself by executing a settlement deed in favor of his brother in the year 2008. As sell as the property stands alienated from your friend to the beneficiary vide the referred settlement deed.

Now:

In the next year, in 2009, his brother again gave a power of attorney to my friend. By this power my friend donated this property to his own name. In 2010, my friend donated the same property to a charitable trust. In 2013, -

vide above statement, your friend's brother again executed a POA on the same property to his brother (i.e., your friend), however your friend misused the power by making a gift unto himself as a donor to a donee, where both the roles played by your friend himself. Subsequently the title holder, the your friend cum donee again executed a gift deed by gifting away the said property to a charitable trust, whereas, without knowing the legal status of the property your friend's brother executed a settlement deed in favor of his son on the same property in the year 2012 itself.

From the above it can be observed that though your friend's brother executed a POA in favor of your fiend, he did not specify in that deed that the agent can donate the property unto himself, therefore the donation or settlement deed by donor (the power agent will become donor on the basis of the power on his name) to himself in the capacity of donee is illegal and invalid in the eye of law hence his subsequent gift deed in the year 2013 also is invalid because the donor is not having marketable title to donate or gift the property to a donee.

Therefore the settlement made by your friend's brother in favor of his son can be held as valid and legal therefore if the property is not in their possession, they can file a suit for recovery of property and declaration of title.

Now you decide who can reclaim the property.

When you give piece meal information you would get the opinions based on your information only, we cannot guess what has happened without you mentioning the same.

However, When the nephew forcibly made his entry into the house in the year 2010, what prevented you from not taking a legal action against him so far, if his entry is illegal and unlawful, besides giving a police complaint for illegal trespass your fiend could ave file a suit for ejectment and mandatory injunction against his nephew for his illegal act.Even now he can file a suit for ejecting him from illegally squatting in the house without any authority but since he has already transferred the property on the name of charitable trust, he does not have any right to initiate any action on his own,more over his father is the principle, so he can very well cancel the power deed on your friend's name even now.

Now your friend has lost the title once he made a gift deed in favor of the trust, so tell me what is his legal position by occupying the two floors of the property?

Your friend already alienate his property when he made a settlement deed.Only the settlement deed created by your friend in favour of nephews father is valid and sustainable in the eye of law. Lot of complications are arisen in your case .Is your friend is mentally fit or not? Your friend can stay in the house until he would evict from the house.

1) it is necessary to peruse various documents cited by you to advice

2)it appears there have been series of transactions executed between your friend , his brother and nephew

3) if your friend executed settlement deed in favour of his brother in 2008 why did he not revoke GPA executed in 2002?

4) you have not mentioned how donation was done by your friend as per POA given by his brother?

5) was it by registered instrument? did your friend gift property to himself under POA by registered gift deed?

6) if so subsequent execution of settlement deed by the brother in favor of his son would be illegal as brother was no longer owner of the property .

since property has been donated to charitable trust eviction proceedings should be initiated by the trust against the nephew and other occupants

1. What is the power conferred by the POA which was executed in 2002? Is it registered?

2. If the 2002 POA was a document of transfer of property then the subsequent settlement deed and POA are a nullity as your friend ceased to be the owner on the execution of POA.

1. Your friend has got the property donated in his name in the year 2009 by virtue of the POA what was executed in his favour by his brother,

2. The above gift deed if registered is a valid title deed,

3. The said property was further donated to a charitable trust by your friend in the year 2010. This gift deed, if registered, is perfectly valid,

4.Your friend's brother has returned the property which he got through the settlement deed executed in the year 2008 by virtue of a POA executed in favour of your friend which he utilised to execute and register a Gift Deed in his favour in the year 2010,

5. So, the brother of your friend was not the title holder of the property which he donated to his son in the year 013. This gift deed is invalid,

6. The property belongs to the Trust now and it is upto the trust to return the property to your friend.