UTI auction

The administrator of the specified undertaking of Unit Trust of India (UTI-I) has received an excellent response for the sale of its properties in Mumbai and other parts of the country. The government had put on auction 277 residential flats belonging to the pre-split Unit Trust of India. According to D S R Murthy, executive director, UTI Mutual Fund, "On the basis of the preliminary report, the response has been very good."

The auctioned flats are situated in posh localities of the country's financial capital, and were, till late, occupied by UTI employees. Selling off the physical assets is part of the government's decision to wind up UTI-I as per the mandate by Parliament. Most of these properties attracted an overwhelming response from the general public, banks and business houses. In some cases, the flats went for well over the average market price.

Recent reports indicated that more than 1,500 UTI officers were asked to vacate their office accommodations by April 2004 to facilitate their sale. The value of real estate in US-64 is estimated at close to Rs 900 crore. The residential properties are reportedly worth more than Rs 100 crore. Moreover, its corporate headquarters at Marine Lines, Mumbai, is close to being sold.

Currently, these properties are managed by UTI Infrastructure Company, a separate company floated to handle the auction.