Key takeaway
An attorney must act within the powers given, in your interest, and account to you. If they have gone beyond their authority or acted dishonestly, revoke the POA at once, alert registries and banks, and take legal action: a civil suit to cancel unauthorised documents and recover money, and a criminal complaint where the facts show fraud or breach of trust. Act quickly — limitation periods apply.
An attorney’s duties
Under the Indian Contract Act, 1872, an agent must follow the principal’s directions, act with reasonable care, render proper accounts and pay over money received on the principal’s behalf. An agent who deals in the business of the agency on their own account without disclosure, or makes secret profit, can be made to account for it.
Warning signs
- The attorney avoids sharing documents or bank statements.
- Rent or sale money is paid to the attorney’s account instead of yours.
- Unexpected entries in land or municipal records, or an encumbrance certificate showing a mortgage.
- New occupants or construction at the property.
- Calls from buyers or banks about transactions you did not approve.
Immediate steps
- Revoke the POA by a deed of revocation and notify the attorney. See revoking a Power of Attorney from abroad.
- Alert institutions: write to the sub-registrar, revenue and municipal offices, banks, housing society and tenants.
- Get certified copies of documents registered under the POA and the encumbrance certificate.
- Publish a public notice in local newspapers.
- Secure possession of the property where you can do so lawfully.
Civil remedies
- Cancellation of documents executed beyond authority or by fraud, under section 31 of the Specific Relief Act, 1963.
- Declaration that a transfer does not bind you, and injunction against further dealings.
- Suit for accounts and recovery of money the attorney received.
- Damages for loss caused by negligence or misconduct.
Whether a third party who dealt in good faith is protected depends on whether the act was within the apparent authority of the POA and whether they knew of any revocation. A properly drafted, specific POA makes it much easier to show that an act was unauthorised.
Criminal remedies
Where the attorney has dishonestly misappropriated property or money entrusted to them, forged documents or cheated buyers or you, offences such as criminal breach of trust, cheating and forgery under the Bharatiya Nyaya Sanhita, 2023 may be involved. A complaint can be made to the police or, if they do not act, to a magistrate. A criminal case can run alongside civil proceedings. See steps to take from abroad as a fraud victim.
Running the case from abroad
Appoint a new, trusted attorney for the litigation with a specific POA, and instruct a lawyer by vakalatnama. Your own evidence — for example, that you never authorised a sale — may be given by video conference where the court allows.
Prevention
- Use specific POAs for defined tasks and time limits.
- Require all money to be paid into your account.
- Exclude powers to mortgage, gift or appoint substitutes unless needed.
- Appoint two attorneys acting jointly for high-value transactions.
- Monitor records and ask for copies of everything signed.
See general vs special Power of Attorney and checklist before appointing a POA holder.
Frequently asked questions
My attorney sold my flat and kept the money. Is the sale valid?
If the POA authorised the sale and the buyer acted in good faith, the sale may bind you, and your remedy is against the attorney for the money. If the POA did not authorise it, or the buyer knew of the fraud, you can seek cancellation.
Can I file a police complaint from abroad?
Yes, through a representative in India and, in many states, online. Your lawyer can also file a complaint before the magistrate.
The attorney is my relative. Do I have to sue?
Not necessarily. A legal notice and negotiated settlement — for example, restoring the property or paying the money — often work. Keep limitation in mind while negotiating.
Need help with POA misuse?
LegalCops connects NRIs with independent lawyers to act quickly on POA misuse. See NRI Power of Attorney services and fraud against NRIs.
Suspect your POA has been misused?
Request a call back and a lawyer will explain urgent steps.
Related guides
- All NRI legal guides
- How to sign a Power of Attorney abroad
- Revoking a Power of Attorney
- Property fraud and forged sale deeds
- Recovering possession of your property
References
- Indian Contract Act, 1872, sections 211–218 and 226–238 — India Code
- Specific Relief Act, 1963, sections 31 and 34; Limitation Act, 1963
- Bharatiya Nyaya Sanhita, 2023; Bharatiya Nagarik Suraksha Sanhita, 2023
- Powers of Attorney Act, 1882
Last reviewed: November 2026.
The information provided is for general educational purposes only and does not constitute legal advice. Applicable laws and procedures may vary depending on the facts, jurisdiction, and circumstances of each matter. Consult a qualified legal professional before taking action.
