UTI's legal action against Padmini Tech

Mumbai: The Unit Trust of India (UTI) has initiated legal action against Padmini Technologies for defaulting in payment of interest dues to the UTI. The mutual fund had subscribed to 16.5 per cent of the company's non-convertible debentures of Rs 8.50 crore on a private placement basis in May 1999.

A UTI press release issued here said the legal action against Padmini is under section 138 of the Negotiable Instrument Act and nonbailable warrants have been issued against the company and its directors  — chairman and managing director Vivek Nagpal, and V S Gupta, who was the director on 18 January 2002. UTI has also invoked the personal guarantee of Nagpal.

The release said the company gave interest cheques involving Rs 125 lakh to the UTI in June 2001 but the cheques were dishonoured and till date no payments have been made to the UTI.