The Supreme Court on Monday agreed to examine a public interest litigation (PIL) seeking the formulation of a comprehensive framework to identify and return unclaimed financial assets, estimated at around Rs 3.50 lakh crore, to their rightful owners or heirs.
A Bench comprising Justices Vikram Nath and Sandeep Mehta issued notices to the Union government, the Reserve Bank of India (RBI), the Securities and Exchange Board of India (SEBI), the Insurance Regulatory and Development Authority of India (IRDAI), the Employees’ Provident Fund Organisation (EPFO), the National Saving Institute and other authorities, directing them to respond to the plea.
The petition highlighted that unclaimed financial assets in India include dormant bank accounts, unclaimed dividends, matured insurance proceeds, unpaid provident fund balances, and unutilised mutual fund units. It argued that these assets are scattered across multiple financial institutions without any unified system to locate or claim them, leaving rightful heirs and nominees unable to access their entitlements.
According to the plea, the absence of a centralised portal across regulatory entities has led to the accumulation of such assets. The petition suggested that a single platform, enabling individuals or nominees to input their Know Your Customer (KYC) details, could provide access to consolidated information on deposits, shares, dividends, insurance, and pension funds.
The PIL further contended that the problem is compounded by the lack of mandatory guidelines requiring financial institutions to record nominee details for every asset. Many financial instruments remain unclaimed due to incomplete or inaccessible information, the petition said.
It added that this systemic gap has created a situation “severely prejudicial” to the public, particularly affecting vulnerable and economically disadvantaged groups. The plea argued that efficient and secure access to financial assets, including inherited ones, is essential for individuals to live a dignified life guaranteed under Articles 14 and 21 of the Constitution.
Citing constitutional provisions, the petition said the right to property under Article 300A, the right to information under Article 19(1)(a), and the right to dignity and welfare under Article 21 collectively mandate the state to facilitate access to and restitution of unclaimed financial assets.
The Supreme Court will now examine the matter, with the respondents expected to file their replies in the coming weeks.
