Saturday,
May 26, 2001, Chandigarh, India
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Breach of trust by UTI After retirement, I invested Rs 2 lakh in UTI monthly income scheme (MIP-96 IV) in 1996 at the interest rate of 14 per cent a year. I was shocked when I received the new income distribution warrant for the year 2001-2002 on 11.5.2001 and found that I am being paid @ 5 per cent only. The same day I read a news report that when all technology stocks were being battered in March this year, UTI was buying heavily into K-10 stocks. It purchased 1,46,000 shares of HFCL at Rs 439, 1,70,000 shares of Global Tele at Rs 259, 13,30,000 shares of DSQ Software at Rs 250 during that month. These shares sell sharply soon after. It is not difficult to understand the reason for such low returns on my investments with UTI. During the Budget session of Parliament, a knowledgeable MP had disclosed that the total holdings of UTI have come down by about Rs 18,000 crore in a year and he wanted to know the reasons for this loss. The Finance Minister in his evasive reply had stated that accounts for profits and losses of UTI would be assessed in June. People responsible for this mess should have been brought to book by now. They have committed a fraud with investors. Big business houses and managers of industry are praising of the Finance Minister for his laudable Budget and economic reforms. And why not? They have been given many benefits and concessions in the name of economic growth. Dr J.B. GOYAL, New Delhi It’s unfair:
The UTI is sending dividend warrants for the current financial year for the scheme MIP 1996 IV monthly income, with interest calculated at 5 per cent, a sudden drop from 12.5 per cent which was advertised when the scheme was launched. Is it fair? Similarly, the government has dropped interest on other small saving schemes, particularly the PPF. Changes, whatsoever, should be done only when a scheme is launched. If it is unavoidable, then the subscribers should be given an option of withdrawal without any strings attached to it. Dr. HARISH KHANNA, Panchkula |
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