Demystifying Plan Sanction and Power of Attorney in Commercial Property Transactions in India

Plan sanction and the power of attorney are two crucial aspects of commercial property transactions in India. Understanding these terms is essential for buyers, sellers, and investors. This guide provides a comprehensive explanation of plan sanction and power of attorney in the context of commercial spaces in India.

Demystifying Plan Sanction and Power of Attorney in Commercial Property Transactions in India:

  1. Plan Sanction:
    • Explanation: Plan sanction refers to the approval granted by local authorities, such as municipal corporations, for the construction or modification of a property.
    • Approval Process: Property owners or developers must submit detailed building plans, which are reviewed by the authorities to ensure compliance with building codes and zoning regulations.
    • Legal Requirement: Plan sanction is a legal requirement before any construction or alteration can take place.
    • Significance: It ensures that the property is constructed in accordance with safety and zoning norms, protecting the interests of both property owners and the community.
  2. Power of Attorney (PoA):
    • Explanation: A power of attorney is a legal document that authorizes one person (the agent or attorney-in-fact) to act on behalf of another person (the principal) in various legal and financial matters, including property transactions.
    • Types: In property transactions, there are two common types of PoA – General PoA and Special PoA. A General PoA grants broad powers, while a Special PoA restricts actions to specific tasks, like property sale or purchase.
    • Usage in Property Transactions: The PoA holder can sign documents, negotiate deals, and perform other legal functions on behalf of the principal, simplifying property transactions, especially for NRI or absentee property owners.
    • Registration: Property PoAs must be registered to be legally valid. Non-registration can lead to legal complications.
    • Revocation: The principal can revoke a PoA at any time, typically by providing written notice to the PoA holder and relevant authorities.
    • Cautions:* It’s vital for both parties to clearly define the scope and duration of the PoA and seek legal advice if needed.


Understanding the concepts of plan sanction and power of attorney is crucial when dealing with commercial property transactions in India. Plan sanction ensures that construction and modifications comply with local regulations, promoting safety and legality. Power of attorney, on the other hand, streamlines property transactions, enabling authorized individuals to act on behalf of property owners. Whether you are buying, selling, or investing in commercial spaces in India, a clear understanding of these terms will contribute to successful and legally sound property transactions. Legal consultation is recommended for both aspects to ensure compliance and avoid potential complications.

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