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Dear BOSS2966,
It varies from company to company what mandatory information they want from their employees.
This is not an individuals decision but a format.
We are back to square one.That if asked a question -
Should an employee
1.Answer correctly
2.Answer as per he feels like whether it is false or misleading.
Members , there is nothing personal here.We are just trying to find the best way to handle such situations.

Dear Smita

If an employee deliberately falsifying the personal information and if it not have any undue effect on any financial matters, then in case of any benefits declared by the company on the merits of the personal information, he will not have it.

If an employee deliberately falsifying the details about the Union membership / political party membership / arrest / FIR Filing details in any Police Station, then the HR is having the power to terminate the employee or enquiry can be done to find out the reason for falsifying and with that enquiry he can be punished.

If an employee deliberately falsifying the details of his family, then in case of any untoward incident, then his family members / legal heir / nominees will not get immediate relief on sympathy grounds from the organisation, because he has not given the correct details initially / subsequently whenever he was asked for. The family members/legal heir has to struggle to get his terminal benefits and submit the proof and even after submitting the organisation can drag them without paying for years.

The ultimate loser will always the employee and not the organisation.

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