Groww clarifies on complaint of 'fraud', says no money deducted from customer, no transaction took place

A Groww user has raised an investment 'fraud' alert.

Investment app Groww clarified on June 24 that there was no 'fraud' -- in response to a viral social media complaint -- saying that the customer's money was not deducted, and the respective mutual fund transaction didn't take place. Yet, the investment platform has credited the disputed amount into the customer's account in order to allay investor fears.

Earlier, over the weekend, a social media post on behalf of a Groww customer went viral, claiming 'fraud' regarding deduction of money without actually being invested. An X (Twitter) user Hanendra Pratap Singh alleged that the Groww app did not make investment into a mutual fund scheme despite taking the money.

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— Groww (@_groww) June 24, 2024

Singh claimed he found out about the money not having been invested when his sister tried to redeem the investment. The screenshots of the social media post, which is now deleted, were shared by other X users.

In response to one of such posts on X, Groww admitted that "the customer's dashboard erroneously reflected a folio". It further said: "The customer's account was showing an incorrect investment due to a recon issue. The customer never made this investment, and no money was deducted from her bank account."

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

It also said that it has credited the money to the customer's account in 'good faith', and has asked for the bank statement showing the debit of the amount at the time of making the said investment.

Groww termed the issue as a 'reporting error', and said that it has resolved the matter. It sought to assure customers that their mutual fund investments are safe on the Groww platform.