Investment app Groww has responded to allegations of financial impropriety following a viral social media complaint.
On June 24, Groww clarified that there was no 'fraud' involved, addressing a claim made by a customer regarding a failed mutual fund transaction.The app explained that the customer's money was not deducted, and consequently, no transaction for the mutual fund purchase took place.However, despite this, Groww decided to credit the disputed amount back to the customer's account in "good faith".The controversy began when a social media post on behalf of a Groww customer alleged that the app had deducted money without executing the intended mutual fund investmentThe investor claimed to have purchased a mutual fund unit from Parag Parikh Mutual Fund via the Groww broking platform back in 2020.The investor reported that since the transaction, she had been receiving regular updates on the mutual fund unit's value, folio numbers, and other relevant details.Fast forward to June 19, 2024, when the investor attempted to redeem the mutual fund unit, she found herself unable to do so.She contacted both Groww and Parag Parikh Mutual Fund for assistance.
Parag Parikh Mutual Fund responded by stating that the folio number provided, which had been visible on her Groww app dashboard, did not exist.Faced with this discrepancy, the investor escalated the issue with Groww.In response to an inquiry, Groww clarified their position, stating that no money had ever been deducted from the investor's account and, consequently, no mutual fund units were purchased.However, sources informed CNBC-TV18 of a reconciliation error on Groww's part, which caused the erroneous reflection of the mutual fund unit purchase on the investor's dashboard.Despite this, Groww decided to return the disputed amount to the investor as a gesture of goodwill.The investor acknowledged receiving the refund.
Investment app Groww has responded to allegations of financial impropriety following a viral social media complaint. On June 24, Groww clarified that there was no 'fraud' involved, addressing a claim made by a customer regarding a failed mutual fund transaction.The app explained that the customer's money was not deducted, and consequently, no transaction for the mutual fund purchase took place.However, despite this, Groww decided to credit the disputed amount back to the customer's account in "good faith".The controversy began when a social media post on behalf of a Groww customer alleged that the app had deducted money without executing the intended mutual fund investmentThe investor claimed to have purchased a mutual fund unit from Parag Parikh Mutual Fund via the Groww broking platform back in 2020.The investor reported that since the transaction, she had been receiving regular updates on the mutual fund unit's value, folio numbers, and other relevant details.Fast forward to June 19, 2024, when the investor attempted to redeem the mutual fund unit, she found herself unable to do so.She contacted both Groww and Parag Parikh Mutual Fund for assistance. Parag Parikh Mutual Fund responded by stating that the folio number provided, which had been visible on her Groww app dashboard, did not exist.Faced with this discrepancy, the investor escalated the issue with Groww.In response to an inquiry, Groww clarified their position, stating that no money had ever been deducted from the investor's account and, consequently, no mutual fund units were purchased.However, sources informed CNBC-TV18 of a reconciliation error on Groww's part, which caused the erroneous reflection of the mutual fund unit purchase on the investor's dashboard.Despite this, Groww decided to return the disputed amount to the investor as a gesture of goodwill.The investor acknowledged receiving the refund.
