Consultation on filing PIL - SECURING UNCLAIMED AND UN-REFUNDED MONEY OF UNIDENTIFIABLE CONSUMERS
Dear Friends,
“Competition is the main stay of the free market. Search for ‘Imperfections’ and ‘Failures’ in the market is the main stay of Consumer Protection Movement,”
of which you are the Masters.” ………G. C. Mathur
“Good Governance of Democracy is the assurance of a Perfect Market where consumers are the whistleblowers and protectors of their Rights that need to be kept out of influences of the politicians, bhakt bureaucrats and judicial benches.” …………G. C. Mathur
It is in connection with a matter that has affected millions of un-identifiable fellow consumers whose trillions of rupees are lying unclaimed and un-refunded over the decades in some cases with various public and private sector bodies that cannot be utilized and or transferred to any Fund or Account without firm consent of consumers, and, I believe, you must be aware of the same but could not take effective steps for reasons best known to you.
02. The estimated collected value of the amount, I believe, is running into several trillions. I am quoting hereunder some of the confirmed figures of the value:
(i) Reserve Bank of India (RBI) ... Rs.12,705.73 Cr as on Jun’17.
(ii) National Pharmaceutical Pricing Authority
(NPPA) ... Rs.2,94,552.00 Cr - Jan ’15
(iii) Department of Posts (DoP) ... Rs.752.44 Cr as on Mar ’11.
(iv) Insurance Regulator & Dev Authority(IRDA) ... Rs.1.5 trillion approx
(v) IRDAI Order SBI Life Insurance to refund
amount collected in excess commission. ... Rs.275.29 crore
03. For your information I have categorized the type of money that has remained unclaimed and un-refunded that I, on behalf of unidentifiable fellow consumers, demand from the authorities to place in a consolidated manner in the Consumer Welfare Fund under Consumer Protection Act 1986 with due amendments to the relevant legislations. Some of the categories of money claimed for refund have been identified as follows:
(i) “Simple Deposits” of consumers of different services e.g., fixed deposits, savings bank accounts, current bank accounts, post office deposits, Government Treasuries (At the Centre and States), insurance, Employees’ Provident Fund Organisation, government bonds, deposits with companies/corporate houses, , et al, that could be termed as “Unclaimed Deposits”;
(ii) “Assessed As Undue S-Tax Charge” collected from consumers by the retail market in the name of taxes – excise, levies, octroi, sales tax/VAT, etc. – but not refunded to consumers, after assessment by the States’/UTs’ taxation authorities.
(iii) “Unfair Trade Practice Detected By Consumers” and reported to the adjudicating authority as a complaint but is dismissed as unacceptable. Example: the chemists’ trade in India charging in the name of Local Taxes Extra but not mention in the Cash Memos because it was chargeable at the First Point of Sales – error of judgment – consumers lost thousands of crores over a time;
(iv) “Un-Ethical Charge”, as Unfair Trade Practice, assessed and recovered by the Regulatory Bodies e.g. IRDA, National Pharmaceutical Pricing Authority of India (NPPA), Competition Commission of India (CCI) in the name of “Cartelisation”, TRAI, Director General Civil Aviation (DGCA), and others, which is the unidentifiable consumers’ money saved in the hands of Regulators but not paid back to the unidentifiable consumers in the CWF.
(v) “Un-Ethical Self-Aggrandisement” by Regulators through transfer of excess money to their Consumer Education and Awareness Funds. Example: TRAI, IRDA, RBI, NPPA, et al. RBI has transferred the funds to pay for the office expenditure of Banking Ombudsmen which were earlier provided for in the Scheme’s budget meant for the purpose.
(vi) “Unethical Transfer of Retail-Investors’ Unclaimed and Unpaid Amounts” versus the Investor Education and Protection Fund set up under the Companies Act in 1999. It is necessary to understand the difference between deposits, price over-charge, undue charge of sales tax, etc. and ‘investment money’ which a consumer (retail investor) invests in speculative market – equity market that is full of risks with the intention of giving financial boost or incentive to producers of goods and services that require additional capital. This will be taken up separately at another occasion.
(vii) “Manipulation of Refund of 4%(CVD) Additional Duty of Customs in terms of Notification No. 102/2007-Customs dated 14.09.2001” by simplifying procedure for sanction of refund of 4% SAD in case of ACP importers vide Circular No. 18/2010-Customs dated 8th July, 2010). The Circular provides for refund that shall be sanctioned in full, on preliminary scrutiny of the documents and certificate of statutory auditor/Chartered Accountant, for correlating the payment of ST/VAT on the imported goods with the invoices of sale and also to the effect that the burden of 4% CVD has not been passed on by the importer to the buyer.
(a) At times the words, “Do we need Regulator for Unclaimed Deposits?”, of M G Warrier a freelancer based in Thiruvananthapuram carried in Moneylife Report dated 04.05.2013 come knocking to the mind. He writes, “Though any move to create awareness is laudable, the sourcing of funds from unclaimed deposits for the purpose, the proposal to appropriate idle funds irrespective of their origin or ownership, is unethical.” While fully agreeing, the emphasis is on bad governance of the Indian Democracy that is abusing the rights of consumers, with utter failure of the institutions of CAG, the chartered accountants and the auditors well positioned by the authorities.
(viii) “The Balances in the Assessed Income Tax Accounts of Unidentifiable Individuals. The Income Tax Departments at the Centre and the States have yet to be approached for confirming the unclaimed balances lying with them for more than 5 years.
04. You will appreciate that the amount is quite substantial and cannot be left to the mercy of bad governance that is responsible for the initial policy and procedural lapses at all levels. My objective is, therefore, just to first secure the money in our hands and then work for their utilization in philanthropic and charitable manner as unidentifiable consumers to whom this money belongs, for the benefit of fellow consumers only that are poor, illiterate, and voiceless besides those in the lower and middle income category largely. Short of time and space, I will put forth the instances before the judiciary at the appropriate time.
05. Coming to the closing of this Consultancy Paper I would like to make it very clear the following:
i) That I have nothing to gain personally, financially or otherwise;
ii) That I have no conflict with the political leadership in power or out of power, or, political parties of any ideology, or, any religious/caste bigotry;
iii) That I have no conflict with the bureaucrats or bureaucracy or administrative machinery except that I seek good governance;
iv) That the aims and objects are being worked out and the same will be placed before a group of fellow consumers, activist organizations that will commit to the cause - SECURE CONSUMERS PERSONAL MONEY AND WORK FOR ITS UTILISATION IN PHILANTHROPIC AND CHARTITABLE MANNER; and,
vi) That my objects include formation of a TRUST (Rashtriya Upbhokta Dharam Khata, another name proposed for CWF) to be managed by UPBHOKTA DHARAM KHATA MANAGEMENT TRUST/Niyas (propose to name “Upbhokta Dharam Khata Prabandhana Nyas) that will all be controlled and directed by consumer protection council at the national, state and district levels (propose to name as Kendriya/State/District Upbhokta Sangrakshan Parishad“) under Consumer Protection Act without any political or bureaucratic nominations as members, with due amendments of relevant legislations. The details will be worked later when the time comes.
06. It is also to inform you that notices have since been issued to the concerned Departments of the Govt of India and State Governments, some of whom have just acknowledge receipt while one or two have just responded. It may also be mentioned that this document is not meant for the media and publilcity, and is, thus, addressed to you as a consumer holding an important position in the society.The matter is now in the hands of a very senior advocate for finalizing the contents of the PIL. I would expect your unbiased online response to the above consultation process with certain commitments latest by 17 March 2018; particularly you’re agreeing to stand by me in the court whenever needed.
Your firm views, comments, and support are sought from participants in all the Circles of LocalCircles.
Thanks with regards,
G. C. Mathur
M: 9910338312. Email: gcmbinty@yahoo.com more
“Competition is the main stay of the free market. Search for ‘Imperfections’ and ‘Failures’ in the market is the main stay of Consumer Protection Movement,”
of which you are the Masters.” ………G. C. Mathur
“Good Governance of Democracy is the assurance of a Perfect Market where consumers are the whistleblowers and protectors of their Rights that need to be kept out of influences of the politicians, bhakt bureaucrats and judicial benches.” …………G. C. Mathur
It is in connection with a matter that has affected millions of un-identifiable fellow consumers whose trillions of rupees are lying unclaimed and un-refunded over the decades in some cases with various public and private sector bodies that cannot be utilized and or transferred to any Fund or Account without firm consent of consumers, and, I believe, you must be aware of the same but could not take effective steps for reasons best known to you.
02. The estimated collected value of the amount, I believe, is running into several trillions. I am quoting hereunder some of the confirmed figures of the value:
(i) Reserve Bank of India (RBI) ... Rs.12,705.73 Cr as on Jun’17.
(ii) National Pharmaceutical Pricing Authority
(NPPA) ... Rs.2,94,552.00 Cr - Jan ’15
(iii) Department of Posts (DoP) ... Rs.752.44 Cr as on Mar ’11.
(iv) Insurance Regulator & Dev Authority(IRDA) ... Rs.1.5 trillion approx
(v) IRDAI Order SBI Life Insurance to refund
amount collected in excess commission. ... Rs.275.29 crore
03. For your information I have categorized the type of money that has remained unclaimed and un-refunded that I, on behalf of unidentifiable fellow consumers, demand from the authorities to place in a consolidated manner in the Consumer Welfare Fund under Consumer Protection Act 1986 with due amendments to the relevant legislations. Some of the categories of money claimed for refund have been identified as follows:
(i) “Simple Deposits” of consumers of different services e.g., fixed deposits, savings bank accounts, current bank accounts, post office deposits, Government Treasuries (At the Centre and States), insurance, Employees’ Provident Fund Organisation, government bonds, deposits with companies/corporate houses, , et al, that could be termed as “Unclaimed Deposits”;
(ii) “Assessed As Undue S-Tax Charge” collected from consumers by the retail market in the name of taxes – excise, levies, octroi, sales tax/VAT, etc. – but not refunded to consumers, after assessment by the States’/UTs’ taxation authorities.
(iii) “Unfair Trade Practice Detected By Consumers” and reported to the adjudicating authority as a complaint but is dismissed as unacceptable. Example: the chemists’ trade in India charging in the name of Local Taxes Extra but not mention in the Cash Memos because it was chargeable at the First Point of Sales – error of judgment – consumers lost thousands of crores over a time;
(iv) “Un-Ethical Charge”, as Unfair Trade Practice, assessed and recovered by the Regulatory Bodies e.g. IRDA, National Pharmaceutical Pricing Authority of India (NPPA), Competition Commission of India (CCI) in the name of “Cartelisation”, TRAI, Director General Civil Aviation (DGCA), and others, which is the unidentifiable consumers’ money saved in the hands of Regulators but not paid back to the unidentifiable consumers in the CWF.
(v) “Un-Ethical Self-Aggrandisement” by Regulators through transfer of excess money to their Consumer Education and Awareness Funds. Example: TRAI, IRDA, RBI, NPPA, et al. RBI has transferred the funds to pay for the office expenditure of Banking Ombudsmen which were earlier provided for in the Scheme’s budget meant for the purpose.
(vi) “Unethical Transfer of Retail-Investors’ Unclaimed and Unpaid Amounts” versus the Investor Education and Protection Fund set up under the Companies Act in 1999. It is necessary to understand the difference between deposits, price over-charge, undue charge of sales tax, etc. and ‘investment money’ which a consumer (retail investor) invests in speculative market – equity market that is full of risks with the intention of giving financial boost or incentive to producers of goods and services that require additional capital. This will be taken up separately at another occasion.
(vii) “Manipulation of Refund of 4%(CVD) Additional Duty of Customs in terms of Notification No. 102/2007-Customs dated 14.09.2001” by simplifying procedure for sanction of refund of 4% SAD in case of ACP importers vide Circular No. 18/2010-Customs dated 8th July, 2010). The Circular provides for refund that shall be sanctioned in full, on preliminary scrutiny of the documents and certificate of statutory auditor/Chartered Accountant, for correlating the payment of ST/VAT on the imported goods with the invoices of sale and also to the effect that the burden of 4% CVD has not been passed on by the importer to the buyer.
(a) At times the words, “Do we need Regulator for Unclaimed Deposits?”, of M G Warrier a freelancer based in Thiruvananthapuram carried in Moneylife Report dated 04.05.2013 come knocking to the mind. He writes, “Though any move to create awareness is laudable, the sourcing of funds from unclaimed deposits for the purpose, the proposal to appropriate idle funds irrespective of their origin or ownership, is unethical.” While fully agreeing, the emphasis is on bad governance of the Indian Democracy that is abusing the rights of consumers, with utter failure of the institutions of CAG, the chartered accountants and the auditors well positioned by the authorities.
(viii) “The Balances in the Assessed Income Tax Accounts of Unidentifiable Individuals. The Income Tax Departments at the Centre and the States have yet to be approached for confirming the unclaimed balances lying with them for more than 5 years.
04. You will appreciate that the amount is quite substantial and cannot be left to the mercy of bad governance that is responsible for the initial policy and procedural lapses at all levels. My objective is, therefore, just to first secure the money in our hands and then work for their utilization in philanthropic and charitable manner as unidentifiable consumers to whom this money belongs, for the benefit of fellow consumers only that are poor, illiterate, and voiceless besides those in the lower and middle income category largely. Short of time and space, I will put forth the instances before the judiciary at the appropriate time.
05. Coming to the closing of this Consultancy Paper I would like to make it very clear the following:
i) That I have nothing to gain personally, financially or otherwise;
ii) That I have no conflict with the political leadership in power or out of power, or, political parties of any ideology, or, any religious/caste bigotry;
iii) That I have no conflict with the bureaucrats or bureaucracy or administrative machinery except that I seek good governance;
iv) That the aims and objects are being worked out and the same will be placed before a group of fellow consumers, activist organizations that will commit to the cause - SECURE CONSUMERS PERSONAL MONEY AND WORK FOR ITS UTILISATION IN PHILANTHROPIC AND CHARTITABLE MANNER; and,
vi) That my objects include formation of a TRUST (Rashtriya Upbhokta Dharam Khata, another name proposed for CWF) to be managed by UPBHOKTA DHARAM KHATA MANAGEMENT TRUST/Niyas (propose to name “Upbhokta Dharam Khata Prabandhana Nyas) that will all be controlled and directed by consumer protection council at the national, state and district levels (propose to name as Kendriya/State/District Upbhokta Sangrakshan Parishad“) under Consumer Protection Act without any political or bureaucratic nominations as members, with due amendments of relevant legislations. The details will be worked later when the time comes.
06. It is also to inform you that notices have since been issued to the concerned Departments of the Govt of India and State Governments, some of whom have just acknowledge receipt while one or two have just responded. It may also be mentioned that this document is not meant for the media and publilcity, and is, thus, addressed to you as a consumer holding an important position in the society.The matter is now in the hands of a very senior advocate for finalizing the contents of the PIL. I would expect your unbiased online response to the above consultation process with certain commitments latest by 17 March 2018; particularly you’re agreeing to stand by me in the court whenever needed.
Your firm views, comments, and support are sought from participants in all the Circles of LocalCircles.
Thanks with regards,
G. C. Mathur
M: 9910338312. Email: gcmbinty@yahoo.com more
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View all 8 comments Below 8 comments
Very good contribution. The main reason is not only he Lethargy but the deliberate negligence and motivated efforts to derail the system by almost all the governing Bodies. Many of the Banks including the Private and co-operative does not pay any heed to the RBI Circulars and directives - knowing well that excuse of delay &/Or prolonging the action/ No action is bound to happen. In a given case - a co-operative bank had cancelled the shares of all share holders who had taken the loan- even after fully return of the same, under the pretext that the General Body resolution empowered Management to do so. Same is the case of Disclosure of the names of the Unclaimed Depositors - above 10 Years - on web site. In this case the Branch either decline to give relevant details to the Hairs of the deceased A/c holder and/or ask to approach to the Head Office. Similarly Insurance companies - the usual practice adopted is that the communication without the Proper Address and details. The Envelops usually carry inadequate address, so that it get return with Remarks " NOT TRACEABLE". Resulting in to increase in the profit of the Branch to get the Person's Promoted. There are several other ways and means adopted. In other given case the Insurance Company paid the Insurance Money worth Rs. 2,00,000/- in addition to rs. 4,00,000/- to third person in connivance with Bank (Again State Co-operative Bank) personnel's and the True Policy holder to run from Pillar to the Post and to knock the doors for Justice for Years together. All the Apex Authorities responded - including the very insurance Company - that the claim is settled as per procedure. RBI did not take any action so also the Anti Corruption Dept, Dept of Public Grievances, Apex Body Controlling the Insurance Companies, as well as Police which camafledged the Matter. The High Court Writ Petition wherein the Police stated the Further Investigation is on "Even after Five Years Investigation and Charge Sheet is Filed". Over and above the properties worth several crors of rupees and the Culprits/Criminal Syndicate members are Scot free openly roaming even in the Court Premises, but not traceable to the investigation Authorities for past several years. To sum up the Intentional negligence's, is mainly and logically to derive and concluded to safeguard wasted interests of the Beneficiaries. more
Mar 29
Along with this we also need a mechanism to make claims for money due to us without having to go to specific body. Many public and private bodies do NOT make payment to individuals and these finally end up as unclaimed. Examples are EPF ( is really due to next of kin and should be delivered by EPFO), company FDs which have been delayed by corporate actions through judiciary (like delayed refund after delay approved by judiciary), shares held jointly where joint holders have died. etc. Most of these arise due to regulators not revising the rules and procedures in tune with times. Most procedures are out sated and complicated. more
Mar 27
Dera sir further i wish you all the best in the initiative and hope something tangible will be achieved. more
Mar 14
dear sir there is another huge corpus with the RBI and such other govt agencies which is investors deposits or assets of financial investment companies which folded up and the govt ceased their assets on which no action is taken. I will name one or two companies here. First GNS Nidhi ltd a company run By a mr karunanidhi that was based in TN. It collected a lot of money from all over India (including Vadodara, Gujrat) promising interest and purchased property etc. It suddenly packed up in 1997 or 98. The assets are with RBI and people were asked to submit their claims to RBI and the case was in high court. It is twenty years and no progress. Hoffland finance ltd New Delhi. Mahadev investments in Nagpur. And there are probably hundreds more whose assets have been ceased by govt on investors complaint. I understand all the assets are under some govt authorities but no one takes action to liquidate them and return investors money many of whom are retired people and some have already expired. Something needs to be done about these billions of rupees and assets of old people lying with the govt agencies or courts. I am sure investors are also consumers. more
Mar 14
Respected Colonel Shilendraji
My Salute to you. Thanks for bringing out another fact of investors money lying in the Government coffers, seized by the Law enforcement agencies, neither returned to the rightful claimants nor utilized for public/consumer welfare purposes. Colnel sir I am of the opinion that the Investors who have invested their money, have the first right over all the money/ assests seized by the authorities, then comes the public sector banks and general public and consumers. This has been going on for the last 70 years since our independence. The present Central Government under the able leadership of PM Modiji is trying to bring in change in the corrupt system that has been rotting and being rotten by the earstwhile successive congress Governments. I still believe that we as consumers come together and make a presentation to PM Modiji along with Finance Minister Arun Jaitelyji, then something can be worked out.
Your valuable opinion would be highly appreciated. Going through the court route will be extremely time consuming and cumbersome.
Regards
Sandeep Sheregar
Advocate High Court
Mumbai more
My Salute to you. Thanks for bringing out another fact of investors money lying in the Government coffers, seized by the Law enforcement agencies, neither returned to the rightful claimants nor utilized for public/consumer welfare purposes. Colnel sir I am of the opinion that the Investors who have invested their money, have the first right over all the money/ assests seized by the authorities, then comes the public sector banks and general public and consumers. This has been going on for the last 70 years since our independence. The present Central Government under the able leadership of PM Modiji is trying to bring in change in the corrupt system that has been rotting and being rotten by the earstwhile successive congress Governments. I still believe that we as consumers come together and make a presentation to PM Modiji along with Finance Minister Arun Jaitelyji, then something can be worked out.
Your valuable opinion would be highly appreciated. Going through the court route will be extremely time consuming and cumbersome.
Regards
Sandeep Sheregar
Advocate High Court
Mumbai more
Mar 15
Respected Mathurji First of all kudos to your courage to think of doing such a thing. I support you in this noble cause whole heartedly. Being an Advocate I am already preparing a Criminal Public Interest Litigation in Mumbai representing a poor victim free of cost. I do have a small suggestion to make, our PM Modiji is a very noble person. Before you file this PIL I think you should meet him once and share your idea of existence of huge fund lying either unutilized or diverted for the means and use of people with vested interests. If you are aware the Idea of demonitization was given to our PM by one Chartered Engineer Mr Anil Bokil from Artha Kranti Santhan of Pune comprising of CAs and Engineers. And PM Modiji implemented the Idea. Similarly if you share this idea I am 100% sure PM Modiji would agree with you and either support you in this cause or take up this project as a National Mission for the protection and welfare of Consumers across the country. Rest is upto you. Any way i wish you all the very best in your endeavour. If you need any support let me know. I am a Practicing Lawyer in Mumbai High Court. Regards Sandeep Sheregar Advocate Mumbai High Court advsheregar@gmail.com more
Mar 13
My approach and objective is to remain non-political, non-commercial and non-religious in making the claim and utilisation of the refunded money. more
Mar 30
It may not be easy for Mr Mathur to meet the PM without a politician intermediary. However, I believe Mr Mathur's plans would be brought to the notice of the PM by some Govt. Department. more
Mar 14
