The UTI fiasco

Sir, - It has come to light that the meltdown at the Unit Trust of India and the erosion of the true worth of US 64 and other funds were the result of a nexus between the management of the Unit Trust of India and large corporations. The fact that many large companies pulled out their investments from the UTI, especially US 64, leaving in the lurch the small investors and charitable and social organisations is gross mismanagement and recourse to unethical business practices by the UTI. Obviously, this cannot mean that these large companies withdrew their funds out of pure business expertise. It is clear that they were aware of what was going to happen.

No doubt the underperformance of the economy, its slowdown and the sluggish market have been contributing factors. But the UTI cannot absolve itself of responsibility.

The Finance Minister contends that he was in the dark about the happenings. This is unacceptable as it is his duty to know.

Geoffery K. Francis,

Chennai

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