In a written reply in the Lok Sabha, minister of state for corporate affairs, Nirmala Sitharaman said this amount would be transferred to Investor Education and Protection Fund (IEPF) after expiry of seven years, if these remain unpaid and unclaimed. The minister said MCA does not collect any information regarding "unclaimed investment funds".
However, under section 205C of the Companies Act, companies are required to upload data on the Ministry's website about this sum.
She said companies reporting unclaimed, unpaid dividends in their balance sheets but not reporting the details in the relevant forms have been identified. Consequently, records of such companies will be scrutinized and a Show Cause Notice will be issued before a final list can be prepared.
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