One of my clients recently had a case which I am explaining below and if you are stuck in such similar situation, here is what to do.

Note: Due to attorney-client privilege, I cannot disclose complete case details or identify the actual parties involved. However, I am sharing the essential facts and legal approach so that if you find yourself in a similar situation, you can understand the available solutions and legal remedies.

Mr.X approached me regarding his intention to purchase an apartment in City A from Mr.Y, who is an NRI residing abroad. Mr.Y claimed he could only provide an abrogated power of attorney for the transaction, as he was unable to return to India for the registration process. Mr.X was concerned about the legal validity and future complications that might arise from such a purchase. The property was located in a prime area of City A and was being offered at a competitive price, which made Mr.X interested but cautious. Upon investigation, we discovered that abrogated power of attorney transactions carry significant risks, including potential disputes over ownership, validity challenges, and registration complications that could surface years later.

Advice in Such Cases

Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation to come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.

Verify the power of attorney document thoroughly through proper legal channels and ensure it’s registered with the appropriate authorities. Conduct due diligence on the property title, checking for encumbrances, pending litigation, and clear ownership chain. Insist on obtaining insurance coverage for the transaction and consider escrow arrangements for payment security.

Applicable Sections of Law

Under the Bharatiya Nyaya Sanhita (BNS), Section 318 deals with cheating and Section 340 covers forgery, which are relevant if fraudulent power of attorney documents are involved. The Registration Act, 1908, governs property registration procedures, while the Transfer of Property Act, 1882, outlines valid property transfer requirements. Bharatiya Nagarik Suraksha Sanhita (BNSS) provisions under Sections 173 and 174 provide framework for investigation of property-related frauds. The Indian Evidence Act, 1872, particularly Sections 85-90, establish presumptions regarding power of attorney documents and their authenticity.

If You Are the Complainant

• File a complaint with the local police station if you suspect fraudulent power of attorney or property documents
• Approach the Sub-Registrar’s office to verify the authenticity of the power of attorney and property documents
• Lodge a complaint with the Real Estate Regulatory Authority (RERA) if the property falls under their jurisdiction
• Submit an application to the Revenue Department for mutation record verification and title confirmation
• Consider filing a civil suit for specific performance or damages if the transaction was legitimate but later disputed

If You Are the Victim

• Immediately preserve all transaction documents, payment receipts, and communication records with the seller or attorney holder
• Contact the bank to stop any pending payments and secure financial evidence of the transaction
• Engage a property lawyer to assess your legal position and potential remedies available
• File a police complaint for cheating and fraud if the power of attorney or property documents are found to be fake
• Apply for interim relief through civil courts to prevent further disposal of the property by unauthorized parties

How the Police Behave in Such Cases

Police typically treat property fraud cases seriously, especially those involving forged power of attorney documents. They usually begin by verifying the authenticity of documents with the registrar’s office and may call both parties for detailed questioning. Investigation involves checking the NRI’s actual existence, verifying signatures, and examining the chain of property ownership. However, police may initially suggest it’s a civil matter and might require substantial evidence before registering a criminal case.

FAQs People Normally Have

Q: Is abrogated power of attorney legally valid for property transactions? A: Abrogated power of attorney can be valid if properly executed and registered, but carries higher risks than direct transactions.

Q: Can NRIs sell property only through power of attorney? A: No, NRIs can also use video conferencing for registration or return to India personally.

Q: What if the power of attorney holder disappears after taking money? A: You can file criminal complaint for cheating and fraud, and pursue civil remedies for recovery.

Q: How to verify if an NRI actually exists? A: Check passport details, visa status, overseas address verification, and bank account authentication.

What Evidence Is Required?

• Original power of attorney document with proper notarization and apostille/embassy attestation
• Property title documents including sale deed, mutation records, and encumbrance certificate
• Identity proof and address verification of both the NRI and power of attorney holder
• Bank statements and payment receipts showing transaction flow and source of funds
• Property valuation certificate and technical due diligence report
• NOC from society/builder and tax payment receipts
• Communication records including emails, WhatsApp messages, and recorded phone conversations

How Long Will the Investigation Take?

Property fraud investigations typically take 6-12 months depending on complexity and cooperation from parties involved. Document verification with foreign authorities may extend the timeline to 12-18 months. Court proceedings for civil disputes can take 2-5 years, while criminal cases may conclude within 1-3 years. The timeline significantly depends on the availability of clear evidence and witness cooperation.

Advocate Sudhir Rao, Supreme Court of India