The Supreme Court on Friday issued notice on a plea related to unclaimed money of investors and depositors taken by various regulators, which remained inaccessible to their rightful legal heirs.
A Bench comprising Justice Abdul Nazeer and Justice J.K. Maheshwari
Filed by journalist Sucheta Dalal, the petition sought direction to the Central Government to create a centralised database, providing information about bank accounts, insurance and post office funds held by deceased account holders, in a time-bound manner.
It also sought establishment of a procedure for dealing with claims of legal heirs qua bank deposits, insurance and post office funds, while eliminating the unnecessary litigation.
Filed under Article 32, the petition sought urgent direction to ensure that unclaimed funds of the public, which get transferred to government-owned funds, such as the Depositor’s Education and Awareness Fund (DEAF), Investor’s Education and Protection Fund (IEPF) and Senior Citizen’s Welfare Fund (SCWF) on the ground that the same were not claimed by the legal heirs/ nominees, are made available to the said legal heirs/nominees by providing information of holders of inoperative/dormant accounts on a centralised online database.
The petitioner argued that even those banks that do offer the data on deceased account-holders, fail to serve the intended purpose qua those legal heirs, who are unaware of the very existence of a bank account.
A centralised database was the need of the hour, to ensure that families/heirs/ nominees in dire need of funds were not deprived of the same, noted the plea.
It said the legal heirs, while making claims after the death of an individual, have to go through a time-consuming and cumbersome process, which wears them out.
The journalist relied on a Circular issued by RBI in June, 2005 to the Chairman/ CEOs of all Scheduled Commercial Banks, emphasising on the need for simplification of procedure with respect to deceased depositors, stating that the tortuous procedures applicable to the family members of a deceased depositor caused considerable distress to such family members.
The petition further sought for the banks, not complying with such Circular issued by RBI qua unclaimed deposits, as well as the settlement of claims, to be identified and penalised.
Case Title: Sucheta Dalal vs Union of India and Ors