Ramanathapuram Police Bust Real Estate Racket Over Forged Power of Attorney

Ramanathapuram police have busted an alleged real estate racket involving a forged power of attorney and arrested four people, according to The Hindu.

The case centres on the alleged use of a fabricated power-of-attorney document in a property transaction. A power of attorney is a legal instrument that allows one person to act on behalf of another, including in certain property-related transactions. Forging such authority can enable a person to falsely represent themselves as having the right to deal with someone else’s property.

The arrests highlight one of the risks that can arise in property transactions: documents that appear to establish authority to sell or deal with land may themselves be fraudulent.

According to The Hindu, the Ramanathapuram police uncovered the alleged racket and arrested four people in connection with the forged document.

The case is significant for property buyers because a registered transaction does not necessarily remove the need for independent verification of the seller’s authority. Where a property is being sold through a power of attorney, buyers need to establish that the document is genuine, valid and actually authorises the transaction being proposed.

A power of attorney is different from proof of ownership. It gives an authorised person the ability to act for another person within the scope of the authority granted. That makes verification of both the underlying ownership and the authority granted under the document important before a property transaction is completed.

The Ramanathapuram case also underlines why buyers should not rely solely on documents presented by an intermediary or seller. Property records, previous deeds and the authority of anyone acting on behalf of the owner should be independently checked before money changes hands.

For buyers, the broader lesson is straightforward: property paperwork needs to be examined as a chain, rather than as a collection of individual documents.

The latest case will now move through the legal process. The allegations against the arrested individuals will have to be established through investigation and subsequent proceedings.

Source: https://www.thehindu.com/news/cities/Madurai/ramanathapuram-police-bust-real-estate-racket-four-arrested-over-forged-power-of-attorney/article71384599.ece