Customer alleges Groww wiped folio details of investment, platform says ‘have credited the investor on good faith basis’

Groww faced backlash on social media after a customer's allegation that her investment was not processed correctly. In response, Groww credited the claimed amount to the investor “on a good-faith basis” and requested bank statements for verification.

Jocelyn Fernandes
Updated24 Jun 2024, 11:52 AM IST
An investor accused Groww of fraud, alleging that when they first invested the money, the app generated a folio and displayed the current amount of growth. However, the issue was discovered when the user tried to redeem the investment.
An investor accused Groww of fraud, alleging that when they first invested the money, the app generated a folio and displayed the current amount of growth. However, the issue was discovered when the user tried to redeem the investment.(Representative Image)

Financial services platform Groww has come under heavy criticism on social media after a user alleged that investment made via the app did not actually happen and that details of the folio were wiped out when the question was raised with the company.

Taking to social media, a user accused the company of fraud, alleging that when his sister first invested the money, the app generated a folio and displayed the current amount of growth. However, the issue was discovered when the user tried to redeem the investment.

Allegedly, the mutual fund in which the investment was made said that the folio number did not exist. When the customer contacted Groww, all details were "removed" from the dashboard, and customer care officials claimed the amount was "never invested correctly".

 

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The allegations led to much concern on X (formerly known as Twitter) from customers of the online broker.

Groww's Response

In response to the complaint and social media furore, Groww issued a statement on X, assuring that it has explained the situation to the customer and credited the claimed amount to the investor on a "good faith basis".

 

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"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 statement read.

"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," it added.

Responding to an X user's demand for an explanation, the account posted: "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. 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."

However, many were not convinced by Groww's defence, stating that a credit of the claimed amount amounted to the platform acknowledging an error on their part.

 

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The investor in question also posted a follow-up post, stating the issue is being resolved.

"Thank you for all the support and help in getting this post to reach the right people and make the right change. Ideally, I would not have removed the post, but since the amount is significant and important at the moment, I might have to go ahead and delete it. Thank you again. Very much appreciated," they said.

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First Published:24 Jun 2024, 11:52 AM IST
HomeCompaniesNewsCustomer alleges Groww wiped folio details of investment, platform says ‘have credited the investor on good faith basis’

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