HC throws out PIL against Rajlakshmi scheme

MUMBAI, OCT 20: The Mumbai High Court on Friday dismissed a Public Interest Litigation (PIL) which challenged the decision of Unit Trust o...

MUMBAI, OCT 20: The Mumbai High Court on Friday dismissed a Public Interest Litigation (PIL) which challenged the decision of Unit Trust of India (UTI) to abruptly terminate its Rajlakshmi scheme.

The PIL was dismissed by Chief Justice B P Singh and Justice S Radhakrishnan on the ground that the matter had already been decided by the Nagpur bench which had recently upheld the decision of UTI to terminate the scheme.

Investors Grievances Forum President Kirit Somaiya had challenged the termination of the scheme from September 30 on the ground that the decision was unilateral, illegal and void.

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The basic thrust of the scheme was to hand over maturity amount to a girl child after she completed 20 years of age. Therefore, terminating it prematurely will defeat its objectives, the PIL urged.

The PIL alleged that the scheme was launched in 1992 and had enrolled 12 lakh girl children. It also alleged that UTI had collected Rs 525 crore under the scheme which had promised to multiply money 21 times in 20 years.

The Nagpur bench of Mumbai High Court, on September 28, had upheld the termination of the scheme and dismissed the petition filed by four minor girls from Akola district.

Justice J N Patel and Justice S D Gundewar had rejected the allegations of mala fide intentions of UTI that termination of the scheme was pre-judicial to the interest of investors.

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Solicitor General of India Harish Salve had argued that the termination clause was duly notified by UTI on April 17, 1993. It clearly indicated that the scheme could be terminated in the best interest of unitholders and the Trust.