Objections raised by UTI include sale of two floors of Nirlon House at Mumbai, composition of sale committee for properties and right of recompense in respect of sacrifices under the one time settlement (OTS). The company owes Rs 32.36 crore to UTI.

The Board for Industrial and Financial Reconstruction (BIFR), had earlier this year circulated a rehabilitation scheme of Rs 78.48 crore for the company which included OTS of Rs 50.02 crore with various financial institutions including UTI.

The scheme also envisaged capital expenditure of Rs 15.35 crore voluntary retirement scheme (VRS) of Rs 10.5 crore and other dues amounting to Rs 2.61 crore. Regarding the sale of the company's Nirlon House property, UTI has demanded that ICICI should pay the prevailing market price which was not agreeable to ICICI,also one of the creditors, a BIFR order said.

UTI has also pleaded for one institutional nominee being there on the sale committee and forming part of the quorum in the meetings of the committee. BIFR has directed Nirlon, ICICI and UTI to resolve the issues relating to sale of Nirlon House and clarified that this issue would not come in the way of sanction of the scheme. "Any consensus reached on the issue would be subject to the approval from the board," a recent BIFR order said.

The board has also directed banks to grant required working capital to the company, after due assessment for the respective years, but the sharing of the working capital would be done by the consortium banks as in the past.

State Bank of India (SBI) would have a right to nominate a full time director for minimum of two years to look into the financial matters of the company as per the BIFR directions.

BIFR had in 1993 sanctioned a rehabilitation scheme of Rs 82 crore but due to various reasons - including non-appointment ofa managing director, the scheme was partially implemented and progress of scheme was also slow and tardy.