Case Of The Vanishing Mutual Fund: Groww User Alleges Fraud And Deception

Groww has come under fire as an investor has claimed that the investment platform did not invest the funds it had received.

What Happened: Rohan Das shared a now-deleted LinkedIn post by Hanendra Pratap Singh, whose sister is supposedly a customer of Groww, on X, accusing the investment platform of fraudulent activities.

According to Singh, his sister had invested in the Parag Parikh Mutual Fund through the Groww app in 2020. However, when they tried to redeem the funds, they found that the transaction was not working.

Upon contacting Parag Parikh’s customer care, they were allegedly informed that no investment had been made by Groww on their behalf and that the folio number provided to them did not exist. Singh also accused Groww’s customer care of being unprofessional and unhelpful.

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However, in response to the allegations, Groww stated: “We assure everyone that no transaction took place and the customer’s money was not deducted from the customer’s bank account in the said matter. The customer’s dashboard erroneously reflected a folio. We have explained the same to the customer, regretting the error. We have resolved the reporting issue and are in touch with the customer for any support required.”

The response spurred a back-and-forth between Das and the investment platform. Das claimed that Groww had indirectly admitted to being in the wrong by agreeing to refund the initially invested amount. However, Groww denied the charge and said the promise was made in “good faith”.

“We have also asked the investor to provide the bank statement evidencing the debit of the said amount, claimed to have been invested. This will facilitate our scrutiny, as well as that of our regulators, of the claimed investment in question,” Groww said.

Other commentators on the post were split on the issue, with some saying it was important to pay equal heed to Groww’s side of the story.

However, others said that even the promised refund amount did not account for the gains the user would have made and that it was a major blow to Groww’s credibility.

The company also released a statement on social media about the whole incident. The brokerage said that the post was spreading misinformation but acknowledged that the customer’s account was showing an incorrect investment due to a recon issue.

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