NEW DELHI: Soon, claimants will be able to seek assets of a deceased worth upto Rs 10 lakh, a five-fold increase from the present ceiling.
The Centre is mulling over amendment to theAdministrators-General Act to raise the present ceiling of Rs 2 lakh upto which a person can claim the assets of a deceased.
The Administrator General appointed by states certifies claims to properties of individuals who die without a legal heir. These properties are vested in government after lying unclaimed for a certain period of time. The objective of the AG Act is to protect the property of a deceased from being misappropriated.
While the administrator verifies claims of the claimants, he has the authority to decide on the nominee of a deceased who has left behind assets upto Rs 2 lakh, excluding the savings in government banks and Provident Fund. The administrator spares them the long-drawn and costly process of moving civil courts.
The Centre feels that decrease in the value of money has made it imperative that the assets that claimants can get through the easier AG route should be increased. A proposal has been mooted to raise it to Rs 10 lakh.
Maharashtra and Uttar Pradesh have already increased the monetary limit to Rs 10 lakh, nudging the Centre to bring the concurrent issue for the rest of the country.
The ceiling has gone up at regular intervals — the last being in 1999 when the monetary limit was increased from Rs 50,000 to Rs 2 lakh.
When the law came into effect in 1963, the limit was only Rs 5,000 but was hiked to Rs 15,000 in 1972. It was again revised to Rs 50,000 in 1983.
The Centre is mulling over amendment to theAdministrators-General Act to raise the present ceiling of Rs 2 lakh upto which a person can claim the assets of a deceased.
The Administrator General appointed by states certifies claims to properties of individuals who die without a legal heir. These properties are vested in government after lying unclaimed for a certain period of time. The objective of the AG Act is to protect the property of a deceased from being misappropriated.
While the administrator verifies claims of the claimants, he has the authority to decide on the nominee of a deceased who has left behind assets upto Rs 2 lakh, excluding the savings in government banks and Provident Fund. The administrator spares them the long-drawn and costly process of moving civil courts.
The Centre feels that decrease in the value of money has made it imperative that the assets that claimants can get through the easier AG route should be increased. A proposal has been mooted to raise it to Rs 10 lakh.
Maharashtra and Uttar Pradesh have already increased the monetary limit to Rs 10 lakh, nudging the Centre to bring the concurrent issue for the rest of the country.
The ceiling has gone up at regular intervals — the last being in 1999 when the monetary limit was increased from Rs 50,000 to Rs 2 lakh.
When the law came into effect in 1963, the limit was only Rs 5,000 but was hiked to Rs 15,000 in 1972. It was again revised to Rs 50,000 in 1983.
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