• Power of Attorney to maternal uncle

My daughter in law owns a residential property in Mumbai. Her building is undergoing Redevelopment at present.
She is an NRI living in the USA, and therefore cannot attend matters/documentation related to the process of redevelopment. She wishes to appoint her Maternal Uncle residing in Mumbai as her POA holder. She does not have any other close and trustworthy relative. My query is----Can she appoint him as her POA holder and if yes, any stamp duty is payable in India? The property is not being sold and the POA holder would be authorised to act on my behalf only as far as the process and documentation of redevelopment is concerned, including representing me at the Office of Sub Registrar in Mumbai.
Thanks in advance & 
Regards.
Asked 5 months ago in Property Law
Religion: Hindu

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18 Answers

She can execute POA in favour of uncle 

 

it has to be on Rs 500 stamp paper 

 

POA should be attested before Indian consulate 

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations

Yes, your daughter-in-law can legally appoint her maternal uncle as her Power of Attorney (POA) holder for redevelopment matters there is no restriction on who can be appointed, as long as the person is trustworthy and willing.

Stamp Duty:

Since the POA is not for sale or transfer of property, but only for redevelopment-related activities, it is treated as a general POA for administrative purposes.

In Mumbai (Maharashtra), ₹500 stamp duty is usually applicable for such POAs under Article 48 of the Maharashtra Stamp Act.

The POA will also need to be adjudicated in Maharashtra if executed abroad (USA) and sent here.

Steps:

1. Draft the POA clearly stating it’s only for redevelopment.

2. Get it notarized or apostilled in the USA (as she is NRI).

3. Send it to India.

4. Adjudicate the POA at the Collector of Stamps office in Mumbai.

Once this is done, her uncle can represent her before the builder and registrar.

Suresh Kumar Pal
Advocate, Allahabad
106 Answers

Yes she can appoint POA. Yes stamp duty of 500 is for POA. If the said POA transfers rights in immovable property it will require compulsory registration 

Prashant Nayak
Advocate, Mumbai
34514 Answers
249 Consultations

Your daughter-in-law can appoint her maternal uncle as her Power of Attorney (POA) for the redevelopment process, as long as he is an adult of sound mind. Indian law doesn't restrict POA appointments to family members. The crucial factor is that the appointed attorney (her uncle) is legally competent to contract.

Stamp duty will be applicable, and for a POA to a non-family member for property matters, it's typically based on the market value of the property. 

The POA document should clearly outline the specific powers granted to the attorney regarding the redevelopment process, such as signing agreements, making decisions, and representing the grantor. 

T Kalaiselvan
Advocate, Vellore
89977 Answers
2492 Consultations

Stamp duty is nominal Rs 500/- on the power of attorney 

Yusuf Rampurawala
Advocate, Mumbai
7899 Answers
79 Consultations

Yes, your daughter-in-law, as an NRI living in the USA, can absolutely appoint her maternal uncle residing in Mumbai as her Power of Attorney (POA) holder for matters related to the redevelopment of her residential property.

Here's a breakdown of the key points:

1. Can she appoint her maternal uncle as her POA holder?

  • Yes, definitely. Indian law allows NRIs to appoint any trusted individual, including family members (blood relatives or otherwise, though close relatives might have stamp duty benefits in some states), friends, or legal professionals, as their POA holder. The most crucial factor is trust, especially since the POA holder will be handling important legal and financial matters on her behalf.

  • Types of POA: For property redevelopment, a Special Power of Attorney (SPA) is generally recommended. This limits the attorney's authority to specific tasks related to the redevelopment process, rather than granting broad powers as a General Power of Attorney (GPA) would. This provides more control and reduces potential risks. The scope of authority should be clearly defined in the POA document.

  • Execution from abroad: Since she is in the USA, the POA document will need to be:

    • Drafted: It should be meticulously drafted, clearly specifying the powers granted for the redevelopment process, including representing her at the Sub-Registrar's Office.

    • Signed and Notarized: She will need to sign the POA in the presence of a Notary Public in the USA.

    • Attestation/Apostille: The notarized POA must then be attested by the Indian Embassy or Consulate in the USA. Alternatively, if both the USA and India are signatories to the Hague Convention of 1961, an Apostille from the competent authority in the USA would suffice.

    • Sent to India: The original attested/apostilled POA should be sent to her maternal uncle in Mumbai.

    • Registration in India: Upon receiving the POA in India, her maternal uncle will need to get it registered at the Sub-Registrar's office in Mumbai within three months of its receipt in India. This is crucial for its legal validity, especially for matters involving immovable property.

2. Is any stamp duty payable in India?

  • Yes, stamp duty is payable in India. The amount of stamp duty for a Power of Attorney in Maharashtra (Mumbai) depends on the nature and scope of the powers granted.

  • For redevelopment (without sale): Since the property is not being sold, and the POA is specifically for redevelopment documentation, the stamp duty would likely be covered under the general provisions for a Power of Attorney.

  • Maharashtra Specifics: In Maharashtra, for a General Power of Attorney (GPA) or Special Power of Attorney (SPA), the stamp duty is typically ₹500 as per the Maharashtra Stamp Act. However, if the POA involves authorizing the sale of real estate, the stamp duty can be significantly higher (e.g., 5% of the market value of the property in municipal areas or 3% in gram panchayat areas, if consideration is involved).

  • Redeveloped project specific stamp duty: For redeveloped projects, there's a specific provision where the allottee (your daughter-in-law) will pay ₹100 as stamp duty for the document related to her new unit in the redeveloped building. The stamp duty between the developer and the housing society will be charged as per the conveyance deed. It is crucial to ascertain the exact purpose and wording of the POA to confirm the applicable stamp duty.

  • Registration Fee: In addition to stamp duty, there will also be a registration fee, which is typically around ₹100 for such documents.

Important Considerations:

  • Clarity in the POA: The POA document must be very clear and specific about the powers granted. It should explicitly state that the uncle is authorized to deal with all aspects of the redevelopment process, including signing agreements with the developer, attending meetings, representing her before authorities (like the Sub-Registrar), and handling any related documentation.

  • Trust: As you rightly mentioned, trust is paramount. Ensure the maternal uncle is someone your daughter-in-law has complete faith in, as he will be legally empowered to act on her behalf.

  • Legal Consultation: It is highly advisable to consult with a property lawyer in Mumbai who specializes in NRI property matters and redevelopment projects. They can help draft a legally sound POA that covers all necessary aspects and ensures compliance with all Indian laws, including stamp duty regulations for Maharashtra. They can also guide her through the specific requirements for POA execution from abroad and its subsequent registration in India.

By following these steps, your daughter-in-law can smoothly manage her property redevelopment in Mumbai even while residing in the USA.

Mohd Anwar Aman
Advocate, New Delhi
102 Answers

Yes, your daughter-in-law (an NRI) can appoint her maternal uncle in Mumbai as her Power of Attorney (POA) holder for redevelopment-related matters.

Key Points:

  • POA must be specific for redevelopment, not sale.

  • POA can be executed abroad, then:

    • Notarised and apostilled (or attested by Indian Consulate).

    • Sent to India and adjudicated (validated) at the Collector of Stamps, Mumbai.

Stamp Duty:

  • Since POA is not for sale, only for redevelopment:

    • Stamp duty is typically ₹500 (Article 48(c), Maharashtra Stamp Act).

    • No registration fee if not authorising sale or transfer.



Shubham Goyal
Advocate, Delhi
2070 Answers
14 Consultations

Your daughter in law needs to execute a Special PoA in favour of her uncle in the USA. It needs to be properly drafted. Then, it has to be executed (meaning, signed by her) and attested by a Notary there. Then it has to be couriered to her uncle here. Within three months of its arrival in India, it needs to be adjudicated at the land registry concerned. Adjudication means assessment of stamp duty payable here. Once adjudicated, The uncle is free to act on it.

Swaminathan Neelakantan
Advocate, Coimbatore
3070 Answers
20 Consultations

Yes, your daughter-in-law, as the lawful owner of the property, can validly appoint her maternal uncle as her Power of Attorney (POA) holder for matters related to the redevelopment of her residential property in Mumbai. Being an NRI, she must execute the POA before a Notary Public or Indian Consulate in the USA. The POA must then be adjudicated (i.e., stamped) in India within three months of receipt, as per the Indian Stamp Act and Maharashtra Stamp Rules. Since the POA is restricted to redevelopment and does not involve sale or transfer of ownership, concessional stamp duty is applicable for such non-sale related property matters. The POA should clearly specify the limited authority granted for redevelopment-related documentation and appearances. After adjudication and registration with the Sub-Registrar in Mumbai, her uncle can legally act on her behalf before authorities, builders, or housing society during the redevelopment process.

Pls connect for further help 😊

Inderdeep Kaur Indu
Advocate, Gurgaon
39 Answers

Rs 500 for POA 

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations

There is no such thing as concessional stamp duty. It is the applicable stamp duty for a PoA in the State of Maharashtra.

Swaminathan Neelakantan
Advocate, Coimbatore
3070 Answers
20 Consultations

There is no concession in stamp duty and you need to also register the POA if you give rights of transfer of immovable property 

Prashant Nayak
Advocate, Mumbai
34514 Answers
249 Consultations

Yes, concessional stamp duty applies for redevelopment POA under Maharashtra law.

Shubham Goyal
Advocate, Delhi
2070 Answers
14 Consultations

The stamp duty is the state subject, any advocate from local who is assisting you in this regard will be able to inform you the correct amount including the charges related to incidentals, hence you may be in touch with the advocate or any consultant, who you will be engaging for this purpose. 

T Kalaiselvan
Advocate, Vellore
89977 Answers
2492 Consultations

Q. May I know the approximate amount of concessional stamp duty that may have to be paid?

  • General Rule for POA in Maharashtra (not involving sale/transfer): For a Power of Attorney that is not for sale or transfer of property, and is for administrative purposes (like managing a property or handling redevelopment matters), the standard stamp duty in Maharashtra is ₹500. This applies even if the attorney is not a "close relative" (parents, spouse, children, siblings) for whom a very minimal stamp duty of ₹50 might sometimes apply in specific contexts, but generally, for property-related POAs not involving sale, ₹500 is the common fee.

  • No "Concessional" Stamp Duty for Maternal Uncle in this specific scenario: While some states and specific situations might offer concessions for "family members," a maternal uncle typically doesn't fall under the category of "close relatives" that would qualify for a significantly lower concessional stamp duty (like ₹100 or ₹200 often seen for direct family transfers or specific gift deeds). The ₹500 stamp duty for a general/special POA for administrative purposes is already a relatively low, fixed fee, not based on property value.

  • Important Distinction - POA for Sale vs. Redevelopment: It's crucial that the POA explicitly states it's for redevelopment-related activities only and not for the sale or transfer of the property. If the POA were to grant powers for selling the property, the stamp duty would be much higher, often a percentage of the property's market value, which is very significant. Since your query clearly states the property is not being sold, the lower fixed fee of ₹500 applies.

Therefore, the approximate amount of stamp duty that will have to be paid in Mumbai (Maharashtra) for this Power of Attorney is likely to be ₹500.

Remember, this POA will also need to be properly adjudicated at the Collector of Stamps office in Mumbai upon its receipt in India, as it's executed abroad. While registration is highly recommended for such property-related POAs, the stamp duty itself for this type of document (limited to redevelopment) is usually the fixed ₹500.

 

Mohd Anwar Aman
Advocate, New Delhi
102 Answers

Ashok Ji, in Maharashtra, when a Power of Attorney (POA) is executed for redevelopment purposes and not for sale or transfer, the stamp duty is typically ₹500 under Article 48 of the Maharashtra Stamp Act, 1958.

This is applicable where:

  • The POA is given to a person other than a family member (like in your case, a maternal uncle),

  • The authority granted is limited to administrative functions, such as signing redevelopment agreements, representing before the housing society, builder, or registrar.

If the POA is executed outside India (as your daughter-in-law is an NRI), then once it arrives in India, it must be adjudicated at the Collector of Stamps office in Mumbai by paying the appropriate stamp duty (₹500) and adjudication fee (usually nominal).

So, the total cost including adjudication fee will usually not exceed ₹1,000–₹1,200.

Please ensure the POA document is:

  1. Notarized or apostilled in the USA.

  2. Sent physically to India.

  3. Adjudicated within 3 months of arrival in India.

 

Suresh Kumar Pal
Advocate, Allahabad
106 Answers

Yes, she can absolutely appoint her maternal uncle as her Power of Attorney holder for this purpose.

There is no restriction in law that the attorney must be an immediate family member – what matters is that she trusts him. Since she is an NRI, the Power of Attorney will have to be executed before the Indian Consulate/Notary in the USA, attested there, and then sent to India for adjudication with the Collector of Stamps in Mumbai.

For redevelopment-related work (not for sale/transfer of ownership), the POA is treated as a specific or limited POA. On adjudication in Mumbai, nominal stamp duty (generally ₹500 for a specific POA) is payable. 

No stamp duty on market value applies unless the POA gives powers to sell or transfer the property.

 

Sukumar Jadhav
Advocate, Mumbai
48 Answers

You can appoint your maternal uncle residing in Mumbai as your Power of Attorney (POA) holder for all matters related to the redevelopment of your residential property. Indian law permits NRIs to appoint any trusted individual, including a relative like a maternal uncle, as their POA for specific purposes such as handling redevelopment documentation and representing you before the Sub-Registrar office.

To do this, you should draft a specific POA clearly limiting the authority to redevelopment-related processes only—it should not include powers to sell or transfer the property unless you expressly want that. Since you are residing in the USA, you must execute the POA in the presence of a Notary Public or at the Indian Embassy/Consulate there.

Once received in Mumbai, your uncle will need to get the POA adjudicated at the Collector of Stamps office. This is a mandatory legal step in Maharashtra before the POA can be used for official acts.

Regarding stamp duty, a POA limited to redevelopment matters carries a nominal fee of Rs. 100 in Maharashtra, as it does not authorize sale or transfer of the property.

If you plan on signing any registered documents during the redevelopment, it is advisable to register the POA at the local Sub-Registrar.

If you want, I can assist in drafting the POA, guide you through the notarization and adjudication process, or provide further legal consultation on this matter. Please feel free to contact me for professional support

Yuganshu Sharma
Advocate, Delhi
961 Answers
2 Consultations

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