Trading Platform Groww Faces Backlash After Fraud Allegations

Groww, a prominent trading platform known for its user-friendly interface, found itself embroiled in controversy over the weekend following allegations of fraud by one of its customers.

Insights:

The issue came to light when Hanendra Pratap Singh took to social media to report that his sister had encountered fraudulent activity after investing through Groww.

According to Singh’s social media post, his sister invested in a mutual fund via Groww, which subsequently generated a folio displaying the invested amount and growth.

When she tried to redeem her investment, she found that the platform’s dashboard had removed all associated details and the folio number didn’t exist.

Meanwhile, the aggrieved user accused Groww of accepting the investment amount without actually investing it in the mutual fund as claimed.

This allegation however sparked widespread outrage on social media platforms, prompting Groww to respond swiftly.

In a statement addressing the issue, Groww acknowledged the concern and stated that they had credited the claimed amount back to the investor “on a good-faith basis” to alleviate any distress caused.

They also requested the investor to provide a bank statement demonstrating the debit of the said amount, which would aid their investigation and that of regulatory authorities.

Clarifying the technical glitch that led to the alleged fraud, Groww further mentioned that the customer’s dashboard had erroneously displayed a folio number.

They assured that the reporting issue had been resolved and emphasized their commitment to providing necessary support to the affected customer.

In response to the incident, another Groww user expressed concerns about the platform’s reliability, stating intentions to monitor their investments more closely going forward.

Groww, which boasts a large user base primarily comprising young investors due to its easy accessibility and variety of financial services, has faced scrutiny in the past over similar issues.

Also Read: Byju’s Reaches Karnataka HC Against NCLT Order Prohibiting It From 2nd Rights Issue