A power of Attorney (POA) is a legal document that authorizes an individual to act on behalf of another person in certain matters. It is a useful tool that allows someone to delegate decision-making authority to another person, especially in situations where the principal is unavailable, incapacitated, or unable to perform certain tasks themselves. However, sometimes the need to cancel a Power of Attorney arises due to various reasons. This blog aims to provide guidance on how to cancel Power of Attorney in India.
Understanding Power of Attorney in India:
Before discussing how to cancel a Power of Attorney in India, let's briefly understand what a Power of Attorney is and how it works in India.
As per Indian law, a Power of Attorney is a legal document that grants someone else (referred to as the 'agent' or 'attorney-in-fact') the authority to act on behalf of the principal (the person who grants the Power of Attorney). It can be of different types, such as General Power of Attorney (GPA), Special Power of Attorney (SPA), Durable Power of Attorney (DPA), etc.
To grant a Power of Attorney in India, the principal must be of sound mind, and the agent must be competent to handle the responsibilities assigned to them. The Power of Attorney must be signed by the principal in the presence of two witnesses, and it must be notarized.
Why Cancel Power of Attorney?
There can be several reasons why a Power of Attorney needs to be cancelled. Some of the common reasons are:
- The task for which the Power of Attorney was granted is completed.
- The principal wishes to revoke the authority given to the agent.
- The agent is no longer able to perform the duties assigned to them.
- The agent has been found guilty of misconduct or fraud.
How to Cancel Power of Attorney in India?
To cancel a Power of Attorney in India, the principal needs to follow a specific procedure. Here are the steps to be followed:
Draft a Revocation Deed:
The first step to cancel a Power of Attorney is to draft a Revocation Deed. This is a legal document that revokes the Power of Attorney and cancels all the authority granted to the agent. The Revocation Deed must mention the date of the original Power of Attorney, the name of the agent, and the reason for revocation.
Get it Attested:
The Revocation Deed must be signed by the principal in the presence of two witnesses. The witnesses must also sign the document and mention their full name, address, and occupation. The Revocation Deed must be notarized by a notary public.
Inform the Agent:
The next step is to inform the agent about the cancellation of the Power of Attorney. The principal can send a written notice to the agent mentioning the date of cancellation and the reason for revocation. The notice must be sent through registered post or any other reliable means of communication.
Register with Sub-Registrar Office:
The Revocation Deed must be registered with the Sub-Registrar office within whose jurisdiction the original Power of Attorney was registered. The principal needs to pay the registration fee and submit the original Power of Attorney along with the Revocation Deed.
Publish the Revocation Deed:
The Revocation Deed must be published in a local newspaper in the area where the agent resides. This is done to inform the public and anyone who may have been dealing with the agent that the Power of Attorney has been cancelled.
Cancelling a power of attorney can be a complicated process, and it is crucial to ensure that all the steps are followed correctly. It is advisable to seek the assistance of a legal expert to ensure that the revocation deed is executed correctly and registered with the relevant authorities. By cancelling the power of attorney correctly, you can protect yourself from any potential misuse of authority by the attorney-in-fact and ensure that your financial and legal affairs are managed in your best interest.