New Delhi, October 6 (IANS) Supreme Court on Monday agreed to investigate a public interest litigation (PIL) regarding unclaimed financial assets in the country, which is estimated to be worth around Rs 3.50 lakh crore.
The petition sought directions to the Central Government, Reserve Bank of India (RBI) and other officials to prepare a comprehensive legal and institutional structure to their right owners or successors for the identity, harmony and restoration of unclaimed financial assets in India.
Issuing the notice, a bench of Justices Vikram Nath and Sandeep Mehta sought reactions from the Center, SEBI, Idardi, EPFO, National Saving Institute and others in the case.
According to PIL, unclaimed financial assets, including inactive bank accounts, unclaimed dividends, mature insurance income, unpaid future fund balance, uncontrolled mutual fund units, etc. are scattered in many financial institutions, which have no integrated mechanisms to explore or claim.
“The said unclaimed financial assets have been accumulated due to the absence of a centralized portal provided at one place in regulated institutions mainly under the respondents (officers), which will allow individuals or their respective nominees after filing in KYC details, such as all the required details related to their related financial assets for bank deposits, shares, insurance and pension.
It states that unclaimed financial property is also the result of the absence of mandatory guidelines for taking details of individuals for each financial property of individuals, which remain unclaimed due to lack of information or proper access.
“The lack of aforesaid action resulted in the absence of proper and systematic information, which is severely prejudiced for the benefit of the general population, especially of the weaker section of individuals,” the petition said.
These economically disadvantaged individuals have a strict need of efficient and safe access to their or inherited financial assets to live a dignified life, guaranteed under Article 14 and 21 of the Constitution of India, stated in the petition.
“It has been introduced that read the right to property under Article 300A and the Right to Information under Article 19 (1) (A), with the right to dignity and welfare under Article 21, the mandate is that the state should actively facilitate such unclaimed assets to reach and return to the valid owners,” Pilot said.
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PDS/DPB