Court notice to UTI over closure of `Rajlaxmi' scheme

Court notice to UTI over closure of `Rajlaxmi' scheme
PRESS TRUST OF INDIA

Sept 19: The Nagpur bench of Mumbai High Court has issued a notice to the Unit Trust of India (UTI) and its western zonal office to show cause in support of its abrupt decision to prematurely terminate `Rajlaxmi Scheme' meant for girls, from October 1.

Justice J N Patel and Justice S D Gundawar, in response to a writ petition filed by four girls from Akola --Nidhi, Veena, Komal and Akshata-- directed the respondents to appear and explain their stand by September 27.

The petitioners contended that UTI invited investment in September 1992 for the benefit of minor girls and under the scheme, girl-child below the age of one year on an investment of Rs 1,000 was due to get Rs 21,000 on attaining the age of 21 years.

As per the scheme, the girl-child would have got 17 per cent annual interest. Similarly under the rules, the scheme could not have been terminated by either parties. Several persons invested in the scheme to the tune of Rs 500 crore.

The UTI decided to terminate the scheme from October 1 and intimations were sent to the investors without forewarning on September 1, the petition said.