Government receives Rs 44 crore in 3 years as unpaid dividend by companies

NEW DELHI: The government today said it has received about Rs 44 crore from companies holding up unpaid and unclaimed dividends among others in the last three years.

A total of Rs 43.88 crore unpaid and unclaimed dividend, deposits and debentures lying with the companies has been transferred to the government in the last three financial years, Corporate Affairs Minister Sachin Pilot said in a written reply to the Lok Sabha.

Of the total, Rs 20.90 crore has been transfered by companies to the government in the last fiscal (2011-12), Rs 12.18 crore in 2010-11 and Rs 10.79 crore in 2009-10.

According to the rules, Pilot said, companies are required to pay the dividend within 30 days of declaration and keep the unpaid/ unclaimed dividend in a Special Bank Accounts for up to seven years.

Unpaid and unclaimed dividend after that needs to be put in Investor Education and Protection Fund (IEPF) and non- compliance with the provision is a punishable offence.

Pilot said that in order to protect the interest of investors and create awareness among them, a website based disclosure framework has been notified by the government.