UTI To Submit ATR By Early Next Month

Mumbai, January 27: | Updated: Jan 28 2003, 05:30am hrs
Unit Trust of India (UTI), which has constituted a three-member committee of trustees to look into the implementation of the recommendations of the Joint Parliamentary Committee (JPC) on the 2001 stocks scam, expects to turn in its preliminary action taken report (ATR) to the finance ministry by early February.

We are targeting sending our ATR to the ministry by early February. Work is on in full swing, and the panel is meeting on the issues, a top UTI official told FE. The Trust had constituted a panel comprising trustees MR Mayya, PN Shah and SH Bhojani for the purpose of going into the areas on which JPC has sought action.

UTI officials said a number of the areas were already such that action has been taken even before the JPC recommendations came out. In some other cases, the splitting of UTI into UTI-I and UTI-II would ensure that those recommendations are automatically acted upon. On the others which are left, clear-cut action will be ensured, the official added.

The committee will turn in its report to the UTI shortly. The report, in all probability, will be seen by the advisory board of UTI-I, since most of the major recommendations pertain to US-64, which comes under UTI-I in the new dispensation. Thereafter, the ATR would be prepared and sent to the ministry. On the tasks remaining to be undertaken, key officials of UTI would be assigned timelines and responsibilities and checks would be undertaken to ensure they had been adhered to, officials said.

Castigating the earlier management of UTI, the JPC had said: The Committee deplore the imprudent manner in which stocks were purchased and retained, leading to a host of malpractices which require comprehensive audit and pre-investigation by a suitably empowered body before proceeding to the investigative level. The JPC has said it is satisfied with the process adopted by UTI in respect of the investment decisions in the case of 19 companies.

It has called for the Advisory Board on Bank, Commercial and Financial Frauds to expeditiously take a final decision on these. Besides, it has suggested that the procedure recommended by the Tarapore Committee also be adopted in the case of investment decisions in another 70 cases, as this meets the ends of natural justice.

The JPC has called for the entire process to be completed within six months of the presentation of the JPC report to Parliament.