SC to examine PIL for restitution of unclaimed financial assets to rightful heirs

New Delhi, Oct 6 The Supreme Court on Monday agreed to examine a public interest litigation (PIL) concerning unclaimed financial assets in the country, which are estimated to be worth approximately Rs 3.50 lakh crore.

The plea sought directions to the Union government, Reserve Bank of India (RBI) and other authorities to formulate a comprehensive legal and institutional framework for the identification, reconciliation, and restitution of unclaimed financial assets in India to their rightful owners or heirs.

Issuing notice, a Bench of Justices Vikram Nath and Sandeep Mehta sought responses of the Centre, SEBI, IRDAI, EPFO, National Saving Institute, and others in the matter.

As per the PIL, unclaimed financial assets, comprising dormant bank accounts, unclaimed dividends, matured insurance proceeds, unpaid provident fund balances, unutilised mutual fund units, etc., are scattered across multiple financial institutions with no unified mechanism to locate or claim them.

“The said unclaimed financial assets have been accumulated primarily due to the absence of a centralised portal made available at one place across the regulated entities under the respondents (authorities) which would allow individuals or their respective nominees after filing in KYC details to access all the requisite details pertaining to their respective financial assets such as bank deposits, shares and dividends, insurance and pension funds amongst others,” the plea stated.

It added that unclaimed financial assets are also the result of the absence of mandatory guidelines for taking details of the nominee(s) for each financial asset of individuals, which remain unclaimed due to a lack of information or proper access.

“The aforesaid lack of action has resulted in the absence of proper and systematic information, which is severely prejudicial to the benefit of the general population, especially that of the vulnerable class of persons,” the plea said.

These economically disadvantaged individuals are in dire need of efficient and secure access to their own or inherited financial assets to live a dignified life, which is guaranteed under Articles 14 and 21 of the Constitution of India, the plea added.

“It is submitted that the right to property under Article 300A and the right to information under Article 19(1)(a), read with the right to dignity and welfare under Article 21, mandate that the state must actively facilitate access to and return of such unclaimed assets to legitimate owners,” the PIL said.

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