Groww faces accusations of investment fraud, takes remedial steps
What's the story
A customer has accused financial services platform, Groww, of fraudulent practices, alleging that her investment was incorrectly processed. The user claimed that it generated a non-existent folio number, and misrepresented the growth of her investment. On trying to redeem it, she was informed by the mutual fund company that the folio number was non-existent. She alleged that upon contacting Groww about this, all details were removed from her dashboard, and customer care officials stated the amount was never invested correctly.
Response
Groww responds to fraud allegations
In response to the wave of criticism sparked on social media, Groww issued a statement denying any fraudulent practices. The company assured that no transaction took place, and no money was deducted from the customer's bank account. "The customer's dashboard erroneously reflected a folio. We have explained the same to the customer, regretting the error," said their statement. To alleviate concerns, Groww credited the claimed amount to the investor "on a good faith basis" and requested bank statements for verification.
Update
Customer acknowledges resolution efforts by Groww
The customer who initially raised the allegations later posted an update on social media, stating that the issue was being resolved. "Thank you for all the support and help in getting this post to reach the right people and make the right change," she wrote. Despite this development, questions remain about Groww's handling of investments and its transparency with customers, as some viewed its move to credit the claimed amount as an admission of error.