It’s easy to invest in any private or government scheme but recovering your money or claim in need is a herculean task. This near to impossible task of recovery will become easy for you or your legal heirs if you follow the mantra of ‘secure investment’.
‘Invest and forget’ this age old adage is coming heavily on investors or their legal heirs after their demise, as getting back the investment is really a herculean task in India. The case becomes more complicated if documents are lost or address is changed or death of investor. We get several such cases where investors or legal heirs are running from pillar to post to get back the hard earned money invested by them or their demised relatives. It happens in all the financial instruments from company shares to bank deposits to provident funds, mutual funds, debtors etc.
According to data available with various government departments / comapnies investments amounting over three lakh crore is lying in physical papers / unclaimed with private and government bodies. We may call it a ‘black hole’ of investor wealth. There are no takers for crores of money stuck up. Literally! various financial instruments such as Old Shares, Mutual Funds, Old Insurance, In-operative bank accounts, Provident Funds and post office deposits carries the ‘black hole’ of unclaimed money that nobody claims year after year. Some data suggests that more than Rs 2 Lakhs crore stuck up in shares which are in physical form.
If we notice beyond the capital markets, the amount is no less mind-boggling. A whopping Rs 60,000 crore is lying in equally crucial instruments of dormant bank accounts, inoperative provident funds, post office savings schemes and matured insurance policies, involving lakhs of investors. “This is such an issue that bothers every household. We prefer to ignore it despite the chronic presence in our daily life in absence of any solution.” People invest their hard earned money so that their spouses or children get it after their sudden. Sadly, in cases of casualty and need of the money, the family suffers.