In today’s world of commerce and industry, the need to enter into legal relations, form agreements or even initiate transactions, is an everyday business. It is not surprising to see hundreds of people delegating these functions and powers to another person, through a legal process known as granting of Power of Attorney (POA). This legal document may be a blessing or a curse, depending on how well the donor/principal (one who grants such power) is aware about it. Being General or Specific in nature, the power granted is either general or for a specific purpose, time etc respectively. Any person competent to enter into a contract may execute a POA; whereas, it also applies to married women even if they are minors. But not minor boys, because, well, we believe in gender equality.
However, this too has loopholes. Granting a Power of Attorney or POA equals making an individual your legal representative, thus, making you liable for their every act. Researches focused on Elder abuse due to the grant of Financial POA, show that children don’t usually shy away from proving their parents to be senile and steal their homes, money, and property. Another study focuses on land grabbing, especially by loan sharks, since making dubious POA’s is inordinately easy in India. However, the Supreme Court passed a judgment on October 13th, 2011, the disparaging sale of immovable properties through agreement, will transfer or even general power of attorney and declared such sales to be void. Thus, the swindlers would now have to get registered ‘Deeds of Conveyance’ to complete their title and this would even restrict unscrupulous owners from selling the same property to various people under a spurious POA.
Nonetheless, no mountain of evil was ever left unconquered. While granting a power of attorney, make sure that your agent is not the conniving little wolf of little red riding hood, and is not given unconditional powers under the POA. Restrict to using a specific POA, with specific terms and periods, to ensure that the reins of your business are always in your hands. Register the POA so revocation becomes easier when you feel so to do.
It is imperative to seek legal help if you have been bamboozled, because unlike New York City, we yet don’t have a Spider-man to protect us. It will be the courts and attorneys for now. Sorry.