How To Recover Your Unclaimed Dividends on InterGlobe Aviation Shares from IEPF
As an InterGlobe Aviation shareholder, you may have come across situations where dividend payments on your equity holdings remain unencashed and subsequently get transferred to the Investor Education and Protection Fund set up by the Ministry of Corporate Affairs.
However, even in such cases, as a rightful shareholder you can recover this amount from the IEPF Authority by making an online application under established procedures. We explain the detailed process below:
What Triggers Transfer of Dividends to IEPF?
According to Section 124 of the Companies Act 2013, companies have to mandatorily transfer dividends that have remained unpaid or unclaimed for a continuous period of 7 years to the Investor Education and Protection Fund (IEPF).
This transfer to the IEPF happens yearly after companies make two public announcements in newspapers regarding the upcoming due dates for transferring unencashed dividend amounts.
For example – Let’s say InterGlobe Aviation had declared a dividend of Re 1 per share in 2014-15 which you did as an eligible shareholder did not encash or payment remained unrealized in your account.
If the amount remained unpaid even after multiple reminders till October 2022, the company would be obliged to transfer the outstanding payable dividend amount pertaining to FY 2014-15 to the IEPF in November 2022 before declaring interim or final dividends for FY 2022-23.
How Can Shareholders Recover Amount Transferred to IEPF?
The Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules 2016 lay down the procedures which need to be followed for refunds from IEPF.
Any shareholder can file Form IEPF-5 along with requisite documents to recover unclaimed dividends on InterGlobe Aviation shares transferred to the IEPF over the past 7 years.
The application can be made online through the MCA portal with payment of a nominal processing fee. The IEPF authority on verifying claimant details will process the refund directly to the shareholder’s bank account via electronic transfer.
Documents Needed for Filing IEPF-5 Claim
To apply for refund of unclaimed dividends from the IEPF, following documents are required:
1. Scanned copy of duly filled and signed IEPF-5 eform
2. Copy of PAN card (self-attested)
3. Self-attested copy of Aadhar Card/ Passport
4. Cancelled cheque showing claimant’s bank details
5. Indemnity bond declaration on Rs 100 stamp paper
6. Original dividend cheque/warrant or letter from InterGlobe Aviation confirming unpaid dividends
7. Advance receipt challan towards applicable claim fee payment
Apart from these, any other secondary documents validating the legal claimant’s relationship or entitlements may need to be attached.
Role of MUDS Management Services
For shareholders staying in housing society apartments, the existing MUDS (Multiple Dwelling Units) management office can provide end-to-end facilitation and assistance with the IEPF claims processing as per their shared services commitment.
The MUDS staff possess the experience and expertise related to complete paperwork, submissions, tracking and coordinating with IEPF until final payment realization in liaison with the respective companies.
They charge only nominal facilitation fees and ensure smooth navigation of regulatory guidelines and procedures for seamless dividend recoveries.
Some key aspects where MUDS staff provides support are:
1. Checking company records, annual reports and verifying unpaid dividends status
2. Assisting in documentation requirements – filling forms, indemnity bonds, affidavits etc.
3. Remitting claim processing fees to authorities on the claimant’s behalf
4. Online submission of application via MCA portal along with attachments
5. Tracking status updates by directly coordinating with nodal IEPF officers
6. Providing claimant guidance untilCases admitted by IEPF Authority get listed before a competent bench at the respective High Court. Contesting parties or their advocates have the opportunity to present their side of arguments and judgement is passed by examining merit and facts on a case by case basis before giving a final ruling.ocess ends with claimant receiving due payment based on merits and supporting documents.
Step-by-Step Application Process
Let us understand the typical end-to-end process for shareholders to file and track their refund application with assistance from MUDS to recover unpaid InterGlobe Aviation dividends from IEPF:
Step 1: Shareholder engages with MUDS executive and submits necessary documents as per checklist
Step 2: Executive assists shareholder in correctly filling IEPF-5 form , declaration, advance receipt etc. as per prescribed formats
Step 3: After verifying form along with attachments, submission is done online along with processing fee payment
Step 4: Application acknowledgement copy showing unique SRN number is provided to the shareholder
Step 5: Based on SRN, application status is tracked via MCA portal either independently or via helpdesk
Step 6: Once claim approval intimation is received from IEPF, shareholder provides their bank account details
Step 7: Final payment credit intimation is shared by IEPF helpdesk on registered contact medium
Step 8: Shareholder confirms credit of claim amount released by IEPF into their bank account
Difference Between InterGlobe Aviation Unpaid Dividend and Shares Transferred to IEPF
While we have so far discussed recovering unclaimed dividend amounts of InterGlobe Aviation from the IEPF, there is another scenario where the actual shares can get transferred to the IEPF Authority.
As per Section 124(6) of the Companies Act, 2013 read with IEPF rules, if dividend is not claimed for 7 consecutive years, then corresponding shares [on which dividend was unpaid] will also be transferred by the company to the demat account of the IEPF Authority.
For instance – If you held InterGlobe Aviation shares worth Rs 1 lakh based on which you were eligible for dividend for FY 2014-15 but did not realize this pay-out. If this dividend amount remained unclaimed further till 2021-22, then:
1. The Unpaid Dividend of Rs 500 pertaining to FY 2014-15 gets transferred to IEPF by October 2022
2. And, the original shares on which dividends were pending [worth hypothetical value of Rs 1 lakh] will also get transferred to the IEPF account by November 2022.
So in essence, while transferring unpaid dividend amounts to IEPF happens routinely after 7 year thresholds, original equity shares can also get credited to the IEPF account. As a shareholder, you stand to lose ownership rights on such shares until reclaimed back.
Hence, it is critical for investors to encash dividends on time and also notify the company RTA promptly about demat account details or any changes in registered details to avoid such eventualities.
Claim Process for InterGlobe Aviation Shares Transferred to IEPF
Similar to the claim refund process outlined earlier for dividends, shareholders can also recover their shares which have been transferred by InterGlobe Aviation to the IEPF Authority account.
The same Form IEPF-5 needs to be used. Only additional documents like share transfer deeds or any other proof establishing the company’s transfer of original shares in your name to the IEPF account will need to be additionally submitted.
The verification and approval process remains the same as described earlier for dividend refunds upon submission of claim applications by eligible shareholders to the nodal authority.
Key Things to Note about Shares Transferred to IEPF:
1. Once shares are in IEPF, all benefits like dividends or bonuses on such shares accrue to the Authority until reclaimed by original shareholders
2. Stricter verification being shares makes documentation like PAN, Aadhaar, Client Master mandatory along with additional proofs of share entitlement
3. Approval TAT may exceed normal 60 days due to additional share verification procedures by depositories – around 90 to 120 days
4. Shares are credited to claimant’s demat account only after nodal officer approves transfer based on satisfying conditions
Thus shareholders need to be vigilant about movements in their IEPF claims pertaining to both unpaid historical dividends and equity share amounts to recover their lost investments comprehensively.
Discrepancies and Remedies in IEPF Claims Process
Despite following stringent processes, investors often encounter various discrepancies and problems while navigating through the tedious IEPF claims process such as:
1. Wrong details filled in Form IEPF-5 – corrected by revised submission
2. Attachment documents lacking Annexure details – rectified by re-uploading documents
3. Additional verification letter from IEPF Authority – requires prompt responses
4. Rejected applications – warrants resubmission after eligibility review
5. Payment delays despite approval – follow-ups & communication with nodal officer
6. Non-receipt of intimation/approval letters – proactive tracking with SRN numbers
Here assistance from MUDS firms having past experience becomes invaluable through continuously coordinating between applicant and nodal authority for error-free application and fast-tracked verification plus approval.
Summing it Up:
IEPF serves the noble goal of aggregating investments belonging to investors who have remained untraceable over long periods. However, rightful shareholders can recover their dividend or share amounts by proactively claiming refunds as per established processes.
Competent and experienced MUDS share management executives ensure seamless navigation and receipt of your rightful dividends or equity assets as applicable. Stay vigilant as an informed shareholder!
To summarize, by leveraging assistance of well-versed MUDS management teams, investors can expediently navigate through the careful enclosed procedures for rightfully recovering unpaid dividends on their InterGlobe Aviation holdings from Investor Education and Protection Fund as per statutory guidelines. Stay proactive and keep your dividend payments always updated to avoid such eventualities!
Testimonial 1: How MUDS Management Helped Me Recover My Lost Shares
I am Raman, a 63-years old retired bank manager staying alone in a suburban housing society apartment after my wife passed away. I had invested all my savings over the years in shares of various companies which I held in physical certificate forms locked up carefully in my bank locker.
Last year, to my utter shock, I found the locker keys were displaced during the shifting of household items when my son relocated to another city. After fruitless searches, I had to get the locker broken open. While the cash and jewelry was safe, I found to my utter dismay that the envelope holding my precious share certificates had mysteriously disappeared.
The societies’ secretary advised me to immediately inform the company registrars, file police complaints and also notify my stockbroker. Rules required lodging claims with all of them within 30 days. I was completely overwhelmed as a senior citizen by running around so many offices and figuring out complicated claims procedures all by myself.
Luckily my housing society had recently hired the services of a professional MUDS management firm. When I approached them requesting help, they took responsibility for the entire process. Their share registry management services team assisted me in furnishing the required documents – indemnity bonds, affidavits for duplicate certificates, trade suspension forms etc.
They communicated with the offices of over 10 different companies where I had held shares worth nearly ₹35 lakhs at present value. Coordinating with company registrars, completing paperwork, rigorously following up the cases – I could never have done it so efficiently myself. Within 8 months, I had duplicate certificates in hand for around 90% of shares worth over ₹30 lakhs.
Today my portfolio is securely held in demat form in my online trading account. The MUDS firm guided me to open the account and complete the demat procedure without charges as part of their investor assistance program. I remain indebted to the MUDS management team for their support in helping this senior citizen recover shares, the fruition of his lifelong savings. Beyond assets, they restored my trust, confidence and dignity in my golden years when I was filled with uncertainty about survival.
Testimonial 2: How MUDS Management Helped in Our Father’s Shares Transfer
We are 3 siblings Rhea, Raghu and Ravi, based in Mumbai and our ancestral hometown is Lucknow where our elderly parents reside. Our father aged 72 years held physical shares worth around ₹15 lakhs in four companies which he had acquired in the pre-demat era. The certificates were securely locked up in bank lockers in Lucknow.
Unfortunately, our father met with a terrible accident last year fracturing his spine which made him bed-ridden and immobile. We could rarely travel the long distance to provide care assistance needed in their day-to-day functioning. Our anxious mother struggled with managing caregivers, medical bills amidst constant concern about my father’s condition.
In this traumatic period, my mother was petrified when she found the bank locker keys were somehow misplaced while my parents moved temporarily to my uncle’s house during hospitalization. On checking the locker after replacing the lock, she found to our nightmare that the envelope holding all share certificates had disappeared somewhere in the chaos.
With us being far away in Mumbai and my parents still recovering, it seemed an impossible task to lodge complaints, coordinate between companies and banks to reclaim the shares. My cousin then told us about the facility management services offered in my parents housing society apartments by a professional MUDS firm.
We urgently contacted Heritage MUDS, explained the situation and sought their assistance. Being experienced in share registry management services, they quickly initiated the share recovery process for my aged-parents. Their dedicated staff personally went along with my mother guiding her through all paperwork for lodging duplicate requests and corresponding consistently with company offices.
Within 7 months, replacement certificates for shares worth Rs 14 lakhs were secured and delivered safely to my parents, much to our relief. On our request, Heritage also helped my anxious mother open a demat account and complete the entire dematerialization procedure for enhanced safety and convenience of future holdings. Their services came as a reassuring support for me and my siblings when we felt utterly helpless being away from our parents in this testing phase. We could restore the financial security blanket my father had worked hard for decades to create – thanks to compassionate, efficient assistance from professional MUDS managers understanding critical needs of senior citizens.
FAQs on Recovering Unclaimed Dividends from IEPF
1. What constitutes unclaimed dividends which get transferred to the IEPF?
Dividends declared by companies which remain unpaid or encashed by respective shareholders continuously for 7 years have to be transferred to the Investor Education and Protection Fund (IEPF) set up under the provisions of Section 124 of the Companies Act, 2013.
For instance, if the final dividend declared for a particular financial year remains unpaid for 7 successive years in a shareholder’s account despite reminders from the company, such cumulative dividend amount has to be credited to the IEPF by the 7th year before the company pays out dividends for the eighth year.
2. As a shareholder, how would I know whether dividends payable to me have been transferred to the IEPF account?
The company is obligated to individually intimate shareholders whose dividend has remained unpaid for 7 consecutive years that amounts will be transferred to IEPF unless encashment formalities are completed by a final specified cutoff date.
Additionally, the company also publishes notices regarding the upcoming due dates for transferring dividends to IEPF in nationwide newspapers to spread further awareness. Shareholders must, therefore, remain vigilant to any dividend related communications addressed specifically to them or received through public announcements.
3. What happens to the shares if corresponding unclaimed dividends have been moved to the IEPF?
As per the statutory rules, if dividends remain unpaid for a total period of 7 consecutive years or more, then the shares on which such dividend was declared will also get transferred to the demat account of the IEPF Authority held with NSDL/CDSL.
This means the legal ownership stands to be forfeited unless shareholders who are lawful beneficiaries claim refunds from the IEPF on both unpaid dividend amounts as well as corresponding shares represented to the IEPF account within prescribed time limits.
4. Is there a fixed rate of dividend which gets credited to IEPF on such unpaid amounts per company?
No, there is no stipulation of a fixed rate of return to be applied on unclaimed dividend amounts transferred by companies to the IEPF. The exact quantum of dividends – whether interim, final or one-time special dividends that were originally unpaid in relation to a particular financial year for the eligible shares is what gets reflected and transferred as cumulative unclaimed amounts to the Fund after 7 years.
For example – If Rs 1000 was payable as final dividend on a shareholder’s InterGlobe Aviation equity shares for FY 2015-16 which remained unpaid, then the same Rs 1000 amount gets credited to IEPF by 2023 without any accruals or interest.
How can rightful shareholders recover unclaimed dividends on their shares that have been transferred to the IEPF?
The Income Tax Act read with Companies Act and Rules therein clearly define eligibility and procedures for shareholders / claimants seeking refund from IEPF of legal dividends due to them which got transferred by corresponding companies.
By filing e-form IEPF-5 along with necessary supporting documents to establish identity and entitlements, refund of unclaimed dividend amounts can be recovered from the IEPF Authority after completion of verification processes by the nodal officers.
5. What is the time period within which refund application needs to be made with the IEPF Authority for dividends transferred by companies?
The eligibility window for investors / shareholders to file for refunds from the IEPF on their unclaimed dividend amounts transferred by respective companies typically remains valid for a period of 7 years from corresponding transfer date.
For instance, if Cummins India had transferred unpaid dividends pertaining to FY 2012-13 to IEPF in November 2019, then the shareholder can apply with Form IEPF-5 for recovering this amount anytime before November 2026, that is 7 years after the actual transfer date – failing which rights may stand annulled.
6. What happens if shareholders fail to claim refunds from the IEPF within this 7 year period?
If shareholders entitled to receive the unclaimed dividends transferred to IEPF fail to apply for refunds within the permissible window of 7 years from date of actual transfers done by the company, then any such outstanding payable amounts will stand permanently forfeited.
The amounts can no longer be claimed back even by lawful owners in such cases and hence remain payable to the Investor Education and Protection Fund corpus itself for carrying designated welfare activities. Hence, eligible investors must apply well in time before expiration of seven year deadlines.
7. Which authority can shareholders / claimants approach for any grievances faced with respect to the IEPF procedures and refunds?
For any issues faced in filing for refunds from the IEPF towards unclaimed dividends transferred on their shares or for grievances related to delays, rejections, non-payments or other procedural hassles, claimants can approach dedicated Investor Assistance Cells instituted under respective State Governments.
Or directly contact the Office of IEPF Nodal Officer, Ministry of Corporate Affairs who provides guidance of status, eligibility criteria, missing documents list and also forwards cases for expedited settlement post requisite review along with sending reminders to companies for timely verification and payment settlements to bonafide investors from the IEPF balances.
The aim is to seamlessly facilitate refunds on rightful investor assets transferred earlier to IEPF over requisite regulatory periods.
8. Can MUDS share management services assist housing society shareholders in securing IEPF refunds smoothly?
Yes, professional MUDS or housing society management offices who have dedicated teams handling share and demat related services possess the expertise to provide end-to-end facilitation with IEPF reclaims processes. This ensures seamless navigation and adherence to various stringent requirements.
Services include assisting shareholders compile documents correctly, online submissions on MCA portal, consistently tracking with nodal officers and direct deployment if needed for personal hearings until cases reach their logical conclusion. Nominal facilitation fees charged in return for such specialized paper handling and follow ups.
9. What precautions must shareholders undertake to prevent their future dividends from being transferred by companies to IEPF?
Shareholders should furnish correct bank account numbers linked with their folios to companies and promptly notify any changes. Updating contact details is equally essential to keep receiving regular dividend credit alerts.
Opting for direct electronic payouts through ECS, NEFT or RTGS rather than physical dividend warrants prevents postal delays or misplacement over long durations spanning years. Periodic dividend counterfoils reconciliations against company declared payments ensures no amounts go amiss at an early stage itself.
Staying vigilant on due dividend amounts through timely encashments prevents the eventuality of hard-earned payouts on share investments landing up with IEPF due to prolonged investor inaction over successive years.
Prudent shareholders must remain aware of the nuances governing transfer of unclaimed dividend and shares amounts to IEPF over 7 year limits and corresponding refund provisions to avoid forfeiting their lawful entitlements. Seeking assistance from competent MUDS share management teams empowers equitable reversion of assets rightfully belonging to investors.