ADJUDICATION, STAMPING & REGISTRATION OF POWER OF ATTORNEY IN KARNATAKA

ADJUDICATION, STAMPING & REGISTRATION OF POWER OF ATTORNEY IN KARNATAKA (As amended by the Registration (Karnataka Amendment) Act, 2025)

IMPORTANT AMENDMENT — KNOW THE DISTINCTION The Registration (Karnataka Amendment) Act, 2025 (Karnataka Act No. 42 of 2025) has introduced COMPULSORY REGISTRATION for Powers of Attorney that authorize TRANSFER of immovable property (sale, purchase, gift, exchange). However, for POAs used for OTHER purposes such as collecting documents from banks, mortgage-related work, rent collection, obtaining possession, etc., ADJUDICATION alone continues to be sufficient.

The State of Karnataka, like most other states in India, requires adjudication of documents executed outside India. One such document is the Power of Attorney. With the enactment of the Registration (Karnataka Amendment) Act, 2025 (which received Presidential assent on 22nd July 2025), there has been a significant change — but this change applies only to a specific category of Powers of Attorney.

INTRODUCTION

The 2025 Amendment has inserted a new clause (f) in Section 17(1) of the Registration Act, making registration compulsory for POAs that authorize “transfer of immovable property with or without consideration.” This means POAs used for sale, purchase, gift, or exchange of property now require compulsory registration. However, POAs executed for other purposes continue to be governed by the earlier regime where adjudication of stamp duty is sufficient.

TWO CATEGORIES OF POWER OF ATTORNEY AFTER THE 2025 AMENDMENT

CATEGORY A: POA FOR TRANSFER OF IMMOVABLE PROPERTY

This category includes Powers of Attorney that authorize:

• Sale of immovable property

• Purchase of immovable property

• Gift of immovable property

• Exchange of immovable property

• Any other form of transfer with or without consideration

COMPULSORY REGISTRATION REQUIRED For POAs falling under this category, BOTH adjudication of stamp duty AND registration with the Sub-Registrar are now MANDATORY under Section 17(1)(f). Mere adjudication is NOT sufficient. The POA must be registered before it can be used for any property transfer transaction.

CATEGORY B: POA FOR OTHER PURPOSES (NON-TRANSFER)

This category includes Powers of Attorney that authorize:

• Collecting documents from banks (mortgage papers, title deeds, etc.)

• Managing mortgage-related formalities

• Obtaining possession of property

• Rent collection and tenancy management

• Appearing before authorities for property-related matters

• General administration and management of property (without transfer)

• Executing lease/rental agreements

• Any other purpose that does not involve transfer of ownership

ADJUDICATION SUFFICIENT — REGISTRATION OPTIONAL For POAs falling under this category, ADJUDICATION of stamp duty continues to be sufficient to make the document legally valid and usable. Registration is optional and not mandatory. The earlier legal position continues to apply for such POAs.

POWER OF ATTORNEY EXECUTED OUTSIDE INDIA

A person residing outside India who needs to deal with property located in Bangalore or Karnataka, but is unable to visit India personally, may execute a Power of Attorney (General Power of Attorney or Special Power of Attorney). Through this instrument, they can appoint a family member or any trusted person to act as their agent/attorney.

Depending on the purpose of the POA, the requirements differ:

If the POA is for selling/purchasing/transferring property → Compulsory Registration required.

If the POA is for other purposes (bank work, mortgage documents, rent, possession, etc.) → Adjudication alone is sufficient.

ADJUDICATION OF STAMP DUTY

What is Adjudication?

Adjudication of stamp duty means getting a determination from the District Registrar as to how much stamp duty is payable for a particular document as per the provisions of the Karnataka Stamp Act. Once adjudicated and stamped, the document becomes binding and enforceable.

When is Adjudication Required?

A General Power of Attorney (GPA) or Special Power of Attorney (SPA) executed outside India which relates to property situated in Karnataka or to anything to be done or received in Karnataka is chargeable to stamp duty under the Karnataka Stamp Act. The POA must be adjudicated within a maximum of 90 days after it is received in India.

Where is Adjudication Done?

The POA is adjudicated at the office of the District Registrar having jurisdiction.

Documents Required for Adjudication

1. Letter/Application addressed to the District Registrar for adjudication of POA

2. Original POA duly executed and attested

3. Aadhaar or Passport or Government of India issued ID document

4. Stamp duty payment through K2 challan

When Adjudication Alone is Sufficient

As per the Madras High Court judgment in Manoharan v. Velu, a power of attorney executed on proper stamp need not be produced before the Collector for adjudication if it is already sufficiently stamped. The Court held that Sections 31 and 32 of the Stamp Act come into play only when the opinion of the Collector is sought regarding stamp duty.

For Category B POAs (non-transfer purposes), once properly adjudicated and stamped, the POA is ready for use without any need for registration.

COMPULSORY REGISTRATION (FOR CATEGORY A POAs ONLY)

The 2025 Amendment

Section 17(1) of the Registration Act has been amended to include a new clause (f) which states:

“(f) power of attorney authorizing transfer of immovable property with or without consideration”

Simultaneously, clause (vii) of Section 17(2), which previously allowed optional registration of POAs, has been omitted.

This means that any POA which authorizes the TRANSFER of immovable property — whether for consideration (sale) or without consideration (gift) — must now be compulsorily registered in addition to being adjudicated for stamp duty.

Proof of Life Requirement

The 2025 Amendment has also amended Section 33(4) with two significant changes:

First, the words “may be proved” have been substituted with “shall be proved”, making proof requirements mandatory.

Second, a new proviso has been added:

“Provided that a proof to the effect that the person executing the power of attorney is alive shall be produced as specified in the rules made under this Act.”

This requirement addresses property fraud cases involving deceased principals. When a POA is presented for registration or for use in a property transfer transaction, proof that the principal is alive must be produced as per rules.

HOW TO EXECUTE THE POWER OF ATTORNEY OUTSIDE INDIA

The foreign General Power of Attorney (GPA) or Special Power of Attorney (SPA) must be executed on plain paper with the following requirements:

1. The name of the person executing the power of attorney, including age, father’s name, and complete address should be clearly stated.

2. The date and place of execution of the power of attorney must be mentioned.

3. The power of attorney should specifically provide the details of the attorney holder including name, age, father’s/husband’s name, and address.

4. The purpose and the powers given must be specifically stated without ambiguity.

5. The executant must sign the power of attorney on each page.

6. The signature must be attested by any authorized official of the Indian Embassy / Indian Consulate / Trade Commissioner of India / Notary Public in the foreign country.

7. These officials must affix their stamp and signature on the original power of attorney. If the stamp of the Notary Public does not bear the name, then the principal office address and notary registration number must be written by hand.

SUMMARY: REQUIREMENTS BASED ON PURPOSE OF POA

PRACTICAL EXAMPLES

Example 1: POA for Sale of Property

Mr. Sharma residing in the USA wants to sell his flat in Bangalore. He executes a POA in favour of his brother authorizing him to sell the property.

Requirement: Adjudication of stamp duty + COMPULSORY Registration under Section 17(1)(f).

Example 2: POA for Collecting Mortgage Documents

Mrs. Patel residing in the UK has cleared her home loan. She executes a POA in favour of her daughter to collect the original title documents from the bank.

Requirement: Adjudication of stamp duty is SUFFICIENT. Registration is NOT required.

Example 3: POA for Rent Collection

Mr. Rao residing in Australia owns a commercial property in Bangalore. He executes a POA authorizing his friend to collect rent and manage tenants.

Requirement: Adjudication of stamp duty is SUFFICIENT. Registration is NOT required.

Example 4: POA for Purchase of Property

Ms. Gupta residing in Canada wants to purchase a site in Bangalore. She executes a POA authorizing her father to execute the sale deed on her behalf.

Requirement: Adjudication of stamp duty + COMPULSORY Registration under Section 17(1)(f).

CONCLUSION

The Registration (Karnataka Amendment) Act, 2025 has introduced a targeted change affecting only those Powers of Attorney that authorize transfer of immovable property. For such POAs, compulsory registration is now mandatory in addition to adjudication of stamp duty.

However, for POAs used for other purposes — such as collecting documents from banks, managing mortgages, rent collection, obtaining possession, and general property administration — the earlier legal position continues. For such POAs, adjudication of stamp duty alone remains sufficient, and registration is not mandatory.

It is therefore important to carefully examine the purpose and powers granted in the POA to determine whether compulsory registration applies or whether adjudication alone is sufficient.

Disclaimer: This article is for informational purposes only and does not constitute legal advice. The rules regarding proof of life and other procedural requirements may be notified by the State Government from time to time. The Act shall come into force on such date as the State Government may notify. For specific legal advice, please consult a qualified advocate.

For assistance with adjudication, stamping, and registration of Power of Attorney or other documents in Bangalore, please contact us.