UTI Mutual Fund fined for deficiency of service

The court has fined the UTI Mutual Funds CEO Rs 15,000, along with interest. (Representational)

A Bengaluru consumer court fined the Managing Director and Chief Executive Officer of UTI Mutual Fund Rs 15,000 with interest for deficiency in services.

SM Ramesh, a subscriber to the Unit Linked Insurance Plan (ULIP) since February 2012, filed a complaint against the CEO for a significant delay in updating the value of his investments, the Times of India reported. In a recent judgment, the court observed a service deficiency on the part of the asset management company.

Ramesh's ordeal began in April 2023 when he discovered his holdings, worth Rs 18.75 lakh were inaccurately reflected as zero. Despite his attempts to rectify the issue, including emails and reaching out to UTI Mutual Fund, he received no response for 45 days.

Unsatisfied with the lack of communication, Ramesh escalated his complaint to the company, Securities and Exchange Board of India and the Prime Minister’s Office.

The court observed that there was a substantial delay in updating Ramesh about his investments.

The judges emphasized that even though the claim of zero value was found to be false, the firm's failure to address the customer's concerns promptly constituted a lapse in service.

In the verdict delivered on January 11, 2024, the consumer court ruled that the UTI mutual fund CEO  must compensate Ramesh. Additionally, the asset manager was ordered  to pay Rs 5,000 as court expenses to Ramesh.