The Hindu : Business : Bajaj Auto moves High Court to restrain UTI

Online edition of India's National Newspaper
Thursday, Feb 10, 2005

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Bajaj Auto moves High Court to restrain UTI

MUMBAI, FEB. 9. Bajaj Auto and two others today moved the Bombay High Court, urging for a direction to restrain Unit Trust of India from winding up its bonus plan in keeping with a SEBI guideline and also challenged the regulatory board's circular that allowed closure of such schemes.

Justice A. P. Shah and Justice S. A. Vajifdar will hear the petitions tomorrow.

According to the petitioners, the winding up of bonus plan before March 26 will expose the unit-holders to payment of additional tax and interest and defeat the entire purpose of investing in the bonus plan.

The petitioners submitted that more than 1,100 investors of the UTI's bonus plan scheme are running the risk of their tax planning going haywire with closure of the bonus plan.

Apart from Bajaj Auto, two investors from Jaipur and Pune have petitioned in the Bombay High Court.

Bajaj Auto had invested Rs. 80 crores in UTI Growth and Value Fund. Under this scheme a new plan called UTI Growth and Value Fund — Bonus Plan (formerly IL&FS Growth and Value Plan) was introduced in March 2004 and immediately on March 26 bonus units in the ratio of three units for every two units were issued, the petitioners submitted. — PTI

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