trust has also mobilised another Rs 500 crore by participating
in the governments disinvestment process and the
buyback programmes offered by various corporates in the
last 11 months.
UTI officials say in an effort to trim UTIs NPAs,
the institution has been calling up defaulter companies
and persuading them to issue post-dated cheques for interest
payments. If the cheques bounce for want of funds, UTI
files criminal cases under Section 138 of the Negotiable
Instruments (NI) Act.
5 per cent of the cheques received by UTI have already
bounced and the mutual fund has filed cases against over
50 small and medium enterprises. The officials add: More
significantly, in the case of big corporates, the trust
will press for a change of management in case they are
not ready to clear their dues.
subscribes to the equity of companies, to quasi-equity
instruments and to debt instruments. Often companies do
not pay the interest on debt instruments. UTIs net
NPA is pegged at 9 per cent. It had sticky debts of Rs
2,600 crore as on 30 June 2001. Section 138 of the NI
Act empowers one to file a criminal case if a cheque is
returned by a bank for want of money.
before filing a case, it is mandatory to give a 30-day
notice to the company, giving it another opportunity to
clear its dues. Once a criminal case is filed, the offender
can be jailed for a year and may have to pay a penalty
to cover the cheque that bounced. On 31 March 2001, the
total number of cases pending across 49 courts in Mumbai
UTI officials say the institution has mobilised around
Rs 500 crore by participating in the disinvestment process
and the corporates buyback programmes. UTI had sold
6,17,000 equity shares of the total equity of IBP Ltd
for Rs 1,551.10 per share in the open offer made by the
Indian Oil Corporation for a consideration of Rs 95.7
crore. The trust had also sold 1.3 million shares of VSNL
and fetched Rs 26.3 crore through the open offer.
has mobilised around Rs 5.92 crore by selling 2,41,749
shares of Abbott Laboratories for Rs 245 per share to
Pharmacia Corporation and 14,51,980 equity of GKN Driveshafts
at Rs 55 per share to its parent GKN Automotive GmbH for
around 7.98 crore. It also sold 2,11,396 share of Indian
Resort Hotels at Rs 70 through the buyback offer.