Negative impactCompany

Gave someone power of attorney for your property? Gujarat HC explains what they can and cannot do

Mint 1 hr ago·2 Sept 2026, 3:38 am

The Gujarat High Court recently ruled that a Power of Attorney (POA) holder cannot gift a property on behalf of the owner unless the document explicitly grants that specific right. In a significant case, the court cancelled a gift deed after a POA holder transferred an NRI's property in Vadodara to his own family members. The court clarified that the attorney's authority ended when the owner's wife died, meaning he had no legal standing to transfer the asset.

This ruling highlights a critical risk for investors and property owners who grant broad POAs. It underscores that a POA is not a blank cheque; its scope is strictly limited to what is written in the document. Investors should ensure their attorneys are only authorised for specific tasks, such as collecting rent or handling maintenance, and not for major decisions like selling or gifting assets, to avoid legal complications and potential asset loss.

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