Did Groww Fake An Investment? User Claims Money Was Debited But Never Invested – News18
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Groww said the funds were never deducted from the client’s bank. (Representative Image)
The folio number was allegedly reported as nonexistent by the mutual fund where the investment was placed.
Financial services platform Groww faced controversy when a consumer alleged on social media that an investment made through its app was fraudulent. According to the user, he invested in the Parag Parikh Mutual Fund via Groww in 2020. However, subsequent efforts to redeem the money indicated that no investment had been placed in the fund business. Facing a significant backlash, the platform provided an explanation and offered a refund to the consumer.
Taking to social media platform X (formerly Twitter), a customer accused the firm of fraud. Posting screenshots of the complainant’s allegations, it was claimed that the app produced a folio and showed an updated amount of growth when the money was initially invested. The user’s attempt to redeem the investment revealed the problem.
The folio number was allegedly reported as nonexistent by the mutual fund where the investment was placed. When the consumer got in touch with Groww, customer support representatives said the money was “never invested correctly” and that all information had been “removed” from the dashboard.
The user expressed dissatisfaction by asking, “Where is the money? You can not just wipe a Record and say the issue is sorted.”
Groww responded to these grave charges with a statement outlining its stance. It claimed to have “investigated” the situation and to be able to “assure” that the client made no financial investments.
We have investigated the matter and we can assure that the customer did not make any investment.— Groww (@_groww) June 23, 2024
Another user raised concerns about Groww’s response, questioning whether the money had been withdrawn from their account, where it went, or if any deduction had occurred at all.
What do you mean the customer did not make the investment? I assume here you are operating as an EOP only…if the money was deducted (usually a recurring standing request to the users bank acc) where did the money go? Or the money was never deducted from the users bank acc?— Nitin Kavade (@KavadeNitin) June 23, 2024
Groww said that the funds were “never deducted” from the client’s bank account in this instance.
No, the money was never deducted from the bank account of the customer in the said matter.— Groww (@_groww) June 23, 2024
In response to one of these postings on X, Groww confirmed that “the customer’s dashboard erroneously reflected a folio,” but added that no transaction occurred and no money was withdrawn from the customer’s account.
Another user then responded, sharing a screenshot of the complainant’s most recent update on the situation. The complaint posted an update on LinkedIn, stating that after several conversations and discussions, Groww has admitted to the error of producing an invalid entry and the incorrect folio. The investing business ultimately opted to reimburse the consumer for the disputed amount.
The company, however, asserted that it had returned the funds to the client’s account in “good faith” and requested a copy of the bank statement demonstrating the amount that had been deducted at the time the transaction was made.
To ensure that the investor doesn’t get anxious about the claimed amount, we have credited it to the investor on good faith basis. 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…— Groww (@_groww) June 23, 2024
Users, meanwhile, voiced scepticism over the company’s conduct.
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