The Ministry of Corporate Affairs does not collect any information regarding “unclaimed investment funds”. However, under section 205C of the Companies Act, 1956, Companies are required to upload data on the Ministry’s website about unclaimed and unpaid amounts on account of dividends, matured deposits, debentures etc. lying with them. Based on data uploaded by Companies, ₹ 3454.29 crore representing such amounts was with the Companies as on 31.03.2014. These amounts would be transferred to Investor Education and Protection Fund (IEPF) after expiry of seven years, if these remain unpaid and unclaimed on expiry of that period.

Based on statutory filings Companies reporting unclaimed/unpaid dividends in their Balance Sheets but not reporting the details in the relevant forms have been identified. Records of such Companies are required to be scrutinized and a Show Cause Notice issued before a final list can be prepared.

No instance of a Company transferring unclaimed dividends to its balance sheet has so far come to the notice of the Government.

This information was given by MoS in the Ministry of corporate Affairs, Smt. Nirmala Sitharaman in a written reply in LokSabha today.

Unclaimed dividends and unpaid investments: statutory filing required and transfer to investor protection fund after seven years. Companies must upload details of unclaimed and unpaid amounts such as dividends, matured deposits and debentures to the Ministry; amounts unclaimed for seven years are liable for transfer to the Investor Education and Protection Fund. Companies reporting unclaimed dividends in balance sheets but not in prescribed returns have been identified for scrutiny and show cause notices before any final list is prepared.