₹1 Lakh crores stuck in government fund for years; one fix cut wait times considerably: Sanjeev Sanyal
EAC-PM member Sanjeev Sanyal reveals how a 25-step, three-portal bureaucratic maze trapped citizens’ unclaimed shares and dividends, until a process overhaul pushed monthly approvals from 900 to over 14,500.
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Context
Sanjeev Sanyal, Member of the , detailed successful process reforms that unlocked nearly ₹1 lakh crore in unclaimed shares and dividends held by the . By streamlining the cumbersome 25-step recovery process using APIs, the government drastically reduced wait times, alongside another reform utilizing to accelerate the voluntary winding up of companies from 500 days to 60 days.
UPSC Perspectives
Governance
This article provides a textbook example of process engineering and e-governance within the context of GS Paper 2. The core issue highlights how bureaucratic silos—specifically, three non-communicating portals requiring 25 manual steps—created a bottleneck that denied citizens access to their rightful assets held by the (IEPF). The reform demonstrates the transformative power of Application Programming Interfaces (APIs) to integrate isolated government databases, enabling real-time data exchange and parallel processing. This shift from a sequential, paper-heavy approach to an integrated, digital-first system directly addresses the concept of Minimum Government, Maximum Governance. UPSC questions frequently focus on the efficacy of e-governance in improving transparency, accountability, and service delivery; this case study illustrates how targeted interventions (identifying the 10-20% of a process causing the most delay) can yield massive results without requiring a wholesale redesign. Furthermore, it touches upon the negative externalities of poor governance, such as the emergence of rent-seeking intermediaries charging exorbitant fees (20%) simply to navigate bureaucratic hurdles.
Economic
From an economic perspective (GS Paper 3), this reform touches upon both the efficiency of financial markets and the broader Ease of Doing Business. The ₹1 lakh crore trapped in the represents unproductive capital. Unlocking these funds injects liquidity back into the hands of citizens, potentially stimulating consumption or reinvestment. More significantly, the article highlights the operationalization of the (C-PACE), established under the . While the Insolvency and Bankruptcy Code (IBC) addresses distressed companies, a large majority of company closures are voluntary business decisions. Previously, the average 500-day wait to exit an unviable business deterred entrepreneurship and tied up capital. By automating no-objection certificates and reducing the exit time to 60 days (an 88% reduction), C-PACE significantly improves the Ease of Exit. A robust economic ecosystem requires not only easy entry for new businesses but also a frictionless mechanism for capital to exit unproductive ventures and be reallocated efficiently. This is a critical component of broader structural reforms aimed at improving India's global competitiveness.
Polity
The article subtly underscores the role and impact of advisory bodies like the (EAC-PM). Unlike statutory or constitutional bodies, the EAC-PM is an independent, non-constitutional, non-statutory body constituted to advise the Prime Minister on economic issues. Its intervention here—identifying systemic bottlenecks and coordinating a solution across multiple portals—demonstrates how high-level advisory bodies can cut through departmental red tape to drive administrative reform. The establishment and proper functioning of entities like the IEPF Authority (a statutory body under the ) are crucial for investor protection, a key regulatory function of the state. When such bodies fail to deliver efficiently, it undermines public trust in financial institutions. The successful reform of the IEPF process is a practical application of the state fulfilling its obligation to safeguard citizen rights and property within the financial sector, moving beyond mere regulation to active facilitation.