03 March 2010
SIR, PLEASE SOLVE MY THIS PROBLEM. WHEN ONE COMPANY HAS TRANSFERRED ONE'S NON CLAIMED AMOUNT FOR 7 YEARS OF DEBENTURE/DIVIDEND, THEN WHAT CAN INVESTOR DO FOR RECOVERING SUCH AMOUNT FROM INVESTOR EDUCATION & PROTECTION FUND?
WHAT IS THE PROCEDURE FOR RECOVERING OF OUR AMOUNT FROM SUCH FUND?
03 March 2010
Once the amount is transferred to the IEPF, there is no way of recovering it back.
The erstwhile provisions wherein the amount was to be transferred to Central Govt at the end of three years, provided for recovery mechanism. But in the current IEPF rules, there is no mechanism of recovering the amount from the fund.
08 March 2010
Sorry. But it would be difficult for me to get that book. I am a working professinal and had cleared CS in 2001. I request if you can send scanned copy of that page or post it in forum.
10 March 2010
sir, here is the extract of my text book. please solve my problem.
"2.7 PAYMENT OF UNPAID OR UNCLAIMED DIVIDEND (SECTION 205B) Any money transferred to the unpaid dividend account of a company in pursuance of this section which remains unpaid or unclaimed for a period of seven years from the date of such transfer shall be transferred by the company to the Investor Education and Protection Fund established under sub-section (1) of section 205C.] Any person claiming to be entitled to any money transferred under sub-section (5) of section 205A to the fund of the Central Government, may apply to the Central Government for an order for payment of the money claimed; and the Central Government may, if satisfied, whether on a certificate by the company or otherwise, that such person is entitled to the whole or any part of the money claimed, make an order for the payment to that person of the sum due to him after taking such security from him as it may think fit :"
10 March 2010
The Section that has been referred above is Sec 205B. Proviso to Sec 205B clearly states that amounts cannot be obtained back from IEPF. I am reproducing below the entire section:
205B. Payment of unpaid or unclaimed dividend
Any person claiming to be entitled to any money transferred under sub-section (5) of section 205A to the general revenue account of the Central Government, may apply to the Central Government for an order for payment of the money claimed; and the Central Government may, if satisfied, whether on a certificate by the company or otherwise, that such person is entitled to the whole or any part of the money claimed, make an order for the payment to that person of the sum due to him after taking such security from him as it may think fit.
Provided that nothing contained in this section shall apply to any person claiming to be entitled to any money transferred to the fund referred to in section 205C on and after the commencement of the Companies (Amendment) Act, 1999.
The above proviso makes it clear that the amount transferred to IEPF i.e. the fund formed under Section 205C cannot be obtained back from the Central Govt.
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