HC notice to UTI over Rajlaxmi scheme closure

The Nagpur bench of Bombay high court has issued a notice to the Unit Trust of India and its western regional office in Bombay, to show cause, as to its decision on the premature closure of 1992 Rajlaxmi scheme for girls.

The bench comprising Justice J N Patel and Justice K S Gundawar has directed UTI to explain its stand on September 27, in response to a writ petition filed by four girls from Akola, whose names are Nidhi, Veena, Komal and Akshata.

Under the scheme, an investment of Rs 1,000 in the name of a girl child below one year, yielded Rs 21,000 on completion of 21 years of age of the girl. The scheme had evoked a very good response netting around Rs 5 billion, also, under the rules, the scheme could not be terminated by either of the parties.

However, the scheme was closed in October 1993, and replaced with Rajlaxmi Scheme Plan II, for which the investment amount was raised from Rs 1,000 to Rs 1,500, while the benefit accruing on it remained the same. The investors were issued notice in August 2000, intimating them of UTI's decision to terminate the scheme from October 1, 2000, against which a petition was filed by the Akola girls.

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