The writ petition is to be taken up by the court on July 29, 2015
All India UTI AMC Officers Association, representing Officers of UTI AMC has challenged the validity of the sale of 26 per cent stake in UTI Trustee Company and in UTI Asset Management Company.
Mumbai: The All India UTI AMC Officers Association, representing Officers of UTI AMC has challenged the validity of the sale of 26 per cent stake in UTI Trustee Company and in UTI Asset Management Company, during January 2010 by the four sponsors (SBI, LIC, PNB and BOB) in favour of foreign institutional investor T. Rowe Price.
In its writ petition filed in the Bombay High Court the association said that under Section 2(h) of the UTI Repeal Act 2002, the sale of stake of the UTI Trustee Company, will be subscribed by banks and financial institutions only and T Rowe Price is neither a bank nor financial institution falling under this restrictive definition.
The transfer agreement entered into between the the government and the four sponsors during 2003 has placed a restriction on these four sponsors under clause 3.3 which allows them to sell their stakes subject to the condition that they comply with all statutory requirements as provided under Section 6 of UTI Repeal Act.
The association has said that the four sponsors have failed to comply with Section 6 of UTI Repeal Act and hence challenged the legal validity of the stake sale in both the entities. In favour of T Rowe Price. The association also demands a Forensic Audit by Comptroller and Auditor General of India.
The writ petition is to be taken up by the court on July 29, 2015.
( Source : deccan chronicle )
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