Groww Clarifies Fraud Allegations, Reassures Customers of Investment Safety 

The fintech platform, which has over 1.5 crore customers across the country, issued a six-point clarification amidst fraud concerns.
Groww Clarifies Fraud Allegations, Reassures Customers of Investment Safety 

Fintech platform Groww has issued a six-point clarification amidst fraud concerns against the app. Taking to X, the finech platform mentioned that it was , “debunking misinformation regarding your investment platform.” 

The platform’s first case was a customer who invested money with Groww, but the company failed to invest the same. On September 25, 2020, a SIP installment of Rs 10,000 was processed. On June 27, 2022, while processing RTA feed files, the company said that they received records for transactions unrelated to the customer but with the same order ID. Due to this error, the customer's original investment made on September 25, 2020, was incorrectly updated to Rs 50,000. This led to an incorrect display of invested value and units in the customer's app portfolio, which was later rectified, according to the company. 

Read: Reverse Flip: Groww Moves Domicile From The USA To India

Other issues that were clarified or debunked by the fintech platform include an allegation where it was said that the company kept its own money and didn’t forward it to the mutual fund company. 

Refuting the allegation, the fintech platform said, “Specific to the customer query, back in 2020, their SIP was linked to the exchange as a biller, where the money went directly from the bank of the customer to the exchange. In this instance, the amount that the customer was claiming was not received by BSE, which is what has been confirmed by BSE to us. 

There were also claims that Groww created a fake folio for a customer and later deleted it. The fintech platform said, “The customer was seeing a different entry, which was the folio details of another transaction. This folio did not belong to that customer. There was no debit from the customer’s account. When the issue was flagged to us, we reconciled the entry, found the issue with the duplicate Order ID handling, and revised the customer’s folio.” 

The fintech platform that claims to have a user base of more than 1.5 crore customers across the country says that the investments of the customers are safe with Groww. 

The clarification comes at a time after Groww's asset management division settled a dispute involving an alleged norm breach by paying INR 9 lakh to the Securities and Exchange Board of India (SEBI). In a filing, the regulatory body reportedly said, “It is hereby ordered that any proceedings that may be initiated for the violations... are settled in respect of the applicants.” 

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