Unclaimed Investment funds of Rs 3,454 cr lying with cos: Govt

Companies held unclaimed investment funds worth Rs 3,454.3 crore till March 2014, and such amounts would be transferred to the Investor Education and Protection Fund after seven years if not claimed, Parliament was informed today.
The unclaimed and unpaid amounts lying with companies were on account of dividends, matured deposits, debentures, among others, Minister of State for Corporate Affairs Nirmala Sitharaman said in a written reply to the Lok Sabha.
"Based on the data uploaded by companies (on the Ministry's website), Rs 3,454.29 crore representing such amounts was with companies as on March 31, 2014," the Minister said.
"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," she added.

Further, Sitharaman said that 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".
She further said that "no instance of a company transferring unclaimed dividends to its balance sheet has so far come to the notice of the government".

Answering a separate query, the Minister said that registration of a total of 2,120 companies have been cancelled within three years of the commencement of their respective businesses, during the period from 2011-12 to 2013-14.
Of these, registration of 468 companies was cancelled in 2011-12, followed by 796 firms in 2012-13 and 856 in 2013-14.

"There is no provision for shutting down of a company under the Companies Act. However, Section 560 of the Companies Act, 1956 empowers Registrar of companies to strike defunct companies off the register," Sitharaman said.
Of the total 2,120 firms, as many as 1,651 companies had not filed their annual returns/balance sheets.
"The government does not conduct any enquiry for non-filing of annual returns/balance sheets by closed companies," Sitharaman said.
Responding to a question on whether some real estate companies were found indulged in corrupt practices with respect to acquiring certain clearances, Sitharaman said information on the same "is being collected".