No money deducted from customer, no transaction took place: Groww on fraud claim

New Delhi : Popular trading platform Groww on Monday clarified that contrary to a customer's claim that she was unable to redeem a mutual fund investment, the customer never made the said investment and no money was deducted from her bank account.

Groww came under backlash on social media after a customer’s relative alleged in a social media post (now deleted) that her sister faced fraud after investing via the financial services platform.

The Groww user had alleged that the app took the money but never actually invested it in the mutual fund.

According to the financial services firm, "a social media post by a customer's relative is being shared, which is spreading misinformation".

"We'd like to clear the air about the said claim. A Groww customer reported on June 19, 2024, that she was unable to redeem a Mutual Fund Investment. Upon investigation, we found that the customer's account was showing an incorrect investment due to a recon issue," Groww said in a fresh post on X.

According to the company, the customer never made this investment, and no money was deducted from her bank account.

"We deeply regret the reporting error and have resolved the Issue. We have been in constant touch with the customer, supporting them with all necessary information. We'd like to assure all our customers that their Mutual Fund investments are safe on Groww. We have always worked towards investor protection and will continue to do so,” said the trading platform.

In its earlier posts on X, Groww had said it credited the claimed amount to the investor "on a good-faith basis". "To ensure that the investor doesn’t get anxious about the claimed amount, we have credited it to the investor on a good faith basis," the company posted.