Power of Attorney (PoA) Scrutiny

How should authority be matched to the project?

A power of attorney should give the authority needed to perform agreed tasks and no unexplained additional powers. Compare it with the DA or JDA and list each proposed power: making applications, signing plans, corresponding with authorities, executing sale documents, borrowing, creating security or delegating. Approval coordination is not the same as a power to dispose of land or compromise member rights.

The donor, property schedule and purpose must be clear. If several owners hold different interests, one person’s authority cannot simply be assumed to cover the others. A society resolution should be examined for the authority it actually grants. The advocate should explain any mismatch between the commercial agreement’s limited purpose and a broadly worded attorney document presented as routine paperwork.

• Transfer of Property Act, 1882, Sections 7, 8 and 54 (transfer and sale)
• Registration Act, 1908, Sections 17 and 49 (registration and effect of non-registration)
• Maharashtra Co-operative Societies Act, 1960 and applicable directions: official Co-operation Department resources

Which clauses create particular risk?

Look closely at borrowing, mortgage, sale, settlement, substitution and receipt-of-money clauses. These can affect interests beyond routine project approvals. Ask whether sale authority is confined to the developer’s lawful allocation and whether borrowing can burden the society’s or landowner’s retained rights. A general power to do all acts necessary should be read with, not instead of, the specific restrictions.

Revocation and termination need transaction-specific advice. Describing a power as irrevocable does not answer every legal question about its nature or survival. Examine its relationship to the underlying interest, the DA’s default provisions and any existing third-party transactions. The draft should also address document custody, reporting, permitted delegates and the consequences if the developer or signatory changes.

How is execution and later use controlled?

Execution, authentication, stamp and registration requirements depend on the authority granted and intended use. Do not sign an incomplete schedule or allow material blanks to be filled later without an agreed process. Obtain a final copy with annexures and keep evidence of the approval under which it was executed. The person signing should understand that the attorney may act on their behalf within the instrument’s legal scope.

After execution, request copies of material documents signed under the power and compare them with the permitted purpose. If misuse is suspected, seek prompt legal advice rather than assuming an email revokes every consequence. A review can recommend narrower powers and monitoring arrangements, but cannot ensure that third parties will disregard a previously issued instrument. Where proceedings are needed, those are a separate engagement.