UTI's scheme of US-64 was set-up specifically to channel small savings of citizens into investments giving respectable returns/interest. The US-64 scheme had 2 crore investors, the bulk of whom were small savers, retired people, widows and pensioners. US-64 had been most popular, giving returns as high as 18% in 1994. In 1998, the UTI crashed because BJP appointed Chief of UTI manipulated to favour corporate bigwigs affiliated with BJP-RSS. Then the BJP-led NDA government organised Rs. 3,500 crore bail-outs to UTI. This resulted in staggering financial losses to the UTI and investors. Thereby thousands of crores were siphoned off to big business and favoured individuals. As a result, UTI’s small investors lost a sum of Rs. 1,300 crores. BJP Finance Minister feigned ignorance of what was happening in the UTI, and remarked that as the Ministry did not have representatives on UTI Board, he did not know of US-64 suspension. This was in sharp contrast to UTI Chief Subramanyam’s bail application in which he repeatedly said that he had kept the Finance Ministry informed about the problems faced by the UTI. Thus BJP-led NDA government plundered people’s UTI savings.
This article is posted by pressbrief.in
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