The Unit Trust of India has recovered around Rs 1,000
crore of non-performing assets from its defaulters during
the last four months.
Trust has also mobilised another Rs 500 crore by participating
in the government's disinvestment process and the buy-back
programmes offered by various corporates in the last 11
UTI officials said that in an effort to trim UTI's non-performing
assets, the institution has been calling up defaulter
companies and persuading them to issue post-dated cheques
for interest payments. If the cheques bounce for want
of funds, UTI files criminal cases under Section 138 of
the Negotiable Instruments Act. Around five per cent of
the cheques received by UTI have already bounced and the
mutual fund has filed cases against over 50 small and
officials said: "More significantly, in the case
of the big corporates, the Trust will press for a change
of management in case they are not ready to clear their
subscribes to the equity of companies, to quasi-equity
instruments and to debt instruments. Often, companies
do not pay the interest on the debt instruments.
net NPA level is pegged at 9 per cent. It had sticky debts
of Rs 2,600 crore as on June 30, 2001.
138 of the NI Act empowers one to file a criminal case
if a cheque is returned by a bank for want of money. But
before filing a case, it is mandatory to give a 30-day
notice to the company, giving it another opportunity to
clear its dues. Once the criminal case is filed, the offender
can be jailed for a year and may have to pay a penalty
to cover the cheque that bounced. On March 31, 2001, the
total number of cases pending across 49 courts in Mumbai
to the UTI officials, the institution has mobilised around
Rs 500 crore by participating in the disinvestment process
and corporates' buy-back programmes:
IBP - 6,17,000 shares for Rs 1,551.10 each, totaling Rs
95.7 crore, in the open offer made by the Indian Oil Corporation.
VSNL - 1.3 million shares, fetching Rs 26.3 crore through
the open offer.
Abbott Laboratories - 2,41,749 shares for Rs 245 per share,
totaling Rs 5.92 crore, to Pharmacia Corporation
GKN Driveshafts Ltd - 14,51,980 shares at Rs 55 per share
totaling Rs 7.98 crore to its parent GKN Automotive GmbH.
Indian Resort Hotels - 2,11,396 shares at Rs 70 each through
the buy-back offer.