MP Government Recovers ₹244 Crore from Forgotten Accounts

Bhopal: In a significant financial revelation, the Madhya Pradesh government has discovered ₹244.76 crore lying dormant in over 1.28 lakh forgotten government accounts. These accounts, many inactive for more than a decade, were recently identified during the state’s annual budget scrutiny by the Finance Department.

One such account, initially opened by the Tribal Welfare Department to promote welfare schemes for tribal communities, had never been utilized and remained unnoticed for years. Upon review, officials realized the funds had been lying idle, prompting immediate recovery measures.

Steps for Fund Recovery:
The Finance Department has initiated the process to reclaim the dormant funds from the Reserve Bank of India (RBI). As per RBI regulations, funds in accounts inactive for ten years or more are classified as unclaimed deposits and transferred to the Depositor Education and Awareness Fund (DEAF). Ownership of these funds rests with the state government, which can reclaim them following prescribed procedures.

To ensure systematic recovery, the Finance Department has issued instructions to all district collectors and treasury officers. A phased schedule has been set:

• Top 50 accounts with the highest balances: claims to be submitted by February 25.
• Next 50 accounts: claims by March 5.
• Remaining accounts: claims by March 10.

Before submission, all accounts will undergo mandatory re-KYC verification. Once recovered, the funds will be credited to the state’s Consolidated Fund, providing significant financial relief.

Official Statement:
Speaking to the media, Additional Chief Secretary Manish Rastogi said, “Following the identification of these accounts, a comprehensive exercise has been launched. District officials have been instructed to verify details and submit claims as per established norms.”

Systemic Gaps Identified:
The discovery also highlights shortcomings in tracking government funds over the years. To address this, the Finance Department has implemented daily monitoring, and district collectors now review progress personally. Consolidated reports are submitted to the department daily, ensuring better accountability in the future.

This recovery is expected to provide the Madhya Pradesh government with a substantial boost to its finances, helping fund key welfare and development initiatives.