No, aliases don't take positional arguments in kshell like they do in
cshell, you have to use a "function" instead. See the ksh man page for
how to make one. Here is a working version of what you wanted to do:
function G { cd `grep $1 /usr/local/ut/paths`;}
And don't forget the "trailing" semicolon.
Good luck - Gunter Steinbach