Groww app accused of debiting money without executing investment, issues refund

Investment platform Groww recently found itself at the centre of a social media controversy, after a customer alleged that the company debited money from his sister’s account without executing an investment. The customer claimed that the Groww app failed to invest his sister’s money into a mutual fund scheme and instead generated a fictitious folio number. A folio is a unique number allotted to an investor for every mutual fund. 

According to the person who raised the complaint, the issue came to light when his sister attempted to redeem the supposed investment. Although the original social media post has since been deleted, screenshots have been widely circulated on X, sparking widespread concern and criticism.

In response to the growing backlash, Groww acknowledged the error, explaining that the customer's dashboard had incorrectly displayed a folio. The company clarified that no actual transaction had taken place and no money was deducted from the user’s account. To reassure the customer and address the issue, Groww credited the claimed amount back to his account as a gesture of good faith. Additionally, they requested the user to provide their bank statement to verify any debits related to the alleged investment.

Groww issued an official statement on X, ensuring users that no transaction had occurred and the money was not deducted. They expressed regret for the error and confirmed that the reporting issue had been resolved. The company added that they are in ongoing communication with the affected user to offer any additional support required.

“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,” read Groww's statement. “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.”

Despite the company's efforts to rectify the situation, the incident has caused concern among several users on social media, with many voicing apprehensions about the security of their mutual fund investments through the platform.