Re: Does anyone have any idea why this is legal?
Actually, having reviewed the rules and FAQs, I don't see any ruling that says that you must have UAA to grab and teleport someone unwillingly. The rules pertaining to UAA are the following:
1) If the character wants to Teleport others without going along himself, he must buy UAA
2) If the Teleporter is grabbed, he may only bring along the grabber if he has UAA
There is no mention of how it is to be treated if a teleporter grabs someone else. It seems that it could be used in the same way as Flight, Leaping or SS. Any why not? I don't see any reason why it is unbalanced vis-a-vis the other movement powers, which allow you to do similar things. I think only EDM jumps as the power that should require a stated exception because it would otherwise be way too easy to abuse.
[EDIT]
Oops, I noticed the small sentence under the "Increased Mass" heading. Involuntary Teleporting requires UAA. Please disregard the entirety of what I wrote :-).