Our client had unclaimed shares in a blue chip company.
During the days of paper share trading he wanted to sell some shares and handed them over to a sub broker in Trichy, TamilNadu
Soon after, Harshad Mehtha Scam aka Securities Scam, there was a raid in all sub broker offices that dealt with any form that was involved in securities scam. All shares that were lying in sub broker offices throughout the county was confiscated.
There is a separate office attached to the Honourable High Court of Bombay that handles these shares.
The shares still show up as unclaimed shares in the name of our client.
We approached the company and they promptly replied that matter is subjudice, and we have to approach the office of custodian attached to the Honourable High Court of Bombay
We approached them. Well, this is not exactly a success story.
We were informed that, we have to prefer a petition stating that we have not received the consideration. If we can prove it, shares can be transferred to our client’s name.
Well, that is impossible. There is no way to prove that money has not been received, though it is indeed a reality. Even if we produce the bank statement before say, 30 years, how are we to prove , it is the only account the client had?
We had to drop the case and advise our clients not to proceed further, since it would amount to throwing good money after bad money.
However, other way about may be easy to prove. We do not have a case study yet on this, though.
Suppose someone has a valid bought note for shares and the shares have not been delivered. That is, before the delivery the shares were confiscated. This will have another person’s name as shareholder since the transfer of shares have not been effected, In these cases, if there is a bought note, we can find the seller’s name and folio and get the share back. If you have a bought note like that contact us. It may mean lot of money and we may be able to help you.