Punjab

Faridkot

CC/19/149

Pipal Singh - Complainant(s)

Versus

Axis Mutual Funds and another - Opp.Party(s)

Anil Kumar Chawla

17 Dec 2019

ORDER

 

DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, FARIDKOT

 

 Complaint No. :        149 of 2019

 Date of Institution:     14.06.2019

Date of Decision :        17.12.2019

 

Pipal Singh Sandhu aged about 72 years son of Shingara Singh resident of Mohan Avenue, Street No.4, Sadiq Road, Faridkot.

           .........Complainant

Versus   

1. Axis Mutual Funds, SCO-28, Feroze Gandhi Market, Ludhiana.
2. Axis Bank Limited, Circular Road, Faridkot.

                                                                         .............OPs

Complaint under Section 12 of the

Consumer Protection Act, 1986.

 

Quorum: Sh. Ajit Aggarwal, President,

               Smt. Param Pal Kaur, Member.

 

Present:  Sh Anil Chawla, Ld Counsel for Complainant,

               Sh Dildeep Singh, Ld Counsel for OPs.

 

ORDER

(Ajit Aggarwal, President)

                                          Complainant has filed the present complaint under Section 12 of the Consumer Protection Act, 1986 against OPs seeking directions to OPs to pay remaining interest amount of Rs.72,000/

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and for further directing OPs to pay Rs.2,00,000/- as compensation for deficiency in service and harassment alongwith litigation expenses of Rs.20,000/-.

2                                       Briefly stated, the case of the complainant is that complainant approached OP-2 for depositing Rs.16 lacs with them in the shape of FDR, but concerned employee of OP-2 advised him that there is another scheme of bank in which interest at the rate of 7.30% is given and there is liberty to withdraw the amount midway and in that condition only 1% would be charged by the bank. It is submitted that complainant was allured by employees of OPs and he deposited rs.16,31,000/-with them. It is submitted that complainant withdrew Rs.6 lacs on 25.03.2019 and Rs.5 lacs on 3.04.2019 and on maturity on 16.04.2019, OPs paid him only Rs.5,79,104.69 and have paid him Rs.48,104.69 as interest for only one year and did not give him interest at the rate of 7.30% as allured by them. In this way, OPs have paid him less interest on amount deposited by him with them. Complainant made several requests to OPs to credit the remaining amount of interest in his account, but OPs did not pay any heed to his genuine requests, which amount to deficiency in service and trade mal practice. All this act and conduct of OPs amounts to deficiency in service and trade mal practice and it has caused harassment and mental agony to him. He has prayed for accepting the present complaint alongwith compensation and litigation expenses besides the main relief. Hence, the complaint.

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3                                              The counsel for complainant was heard with regard to admission of the complaint and vide order dated 19.06.2019, complaint was admitted and notice was ordered to be issued to the OPs.

4                                On receipt of the notice, the OPs filed written statement wherein they have denied all the allegations of complainant being wrong and incorrect and asserted that there is no deficiency in service on their part. It is averred that complainant has levelled false allegations as he has concealed and suppressed the material facts from this Forum and has not come to the Forum with clean hands. It is averred that complainant did not deposit his amount in Fixed Deposit, rather he invested his amount of Rs.16,31,000/- on 16.04.2018 in Mutual Fund Scheme in Axis Regular Saver Fund and Open Ended Hybrid Scheme of OPs and mutual funds do not guarantee any fixed interest or returns and all Mutual Funds Schemes and transactions are governed by the security exchange board of India. At the time of investment, all terms and conditions alongwith risks involved in mutual funds were clearly explained to complainant and he after fully reading, understanding and going through the contents of Scheme Information Documents signed the application form for investment in Mutual Fund Scheme of Axis Bank. It is brought before the Forum that complainant was already told that mutual funds are subject to market risks and there is no assurance of returns on investment made. Any return on investment for mutual funds scheme is

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not obligation on Mutual Fund for providing assured returns or interest. To get the money back, Investor has to initiate redemption request, which is processed and on the basis of actual value of investment on the date of redemption. OPs processed the redemption request of complainant and gave him his amount as per procedure. Complainant has levelled false allegations with ulterior motive to gain undue advantage from them. It is reiterated that there is no deficiency in service on the part of OPs and asserted that complaint filed by complainant is false and frivolous and have also denied all the allegations levelled by complainant being wrong and incorrect and prayed for dismissal of complaint with costs.

5                                              Parties were given proper opportunities to prove their respective case. Counsel for complainant tendered in evidence affidavit of complainant Ex.C-1 and Ex C-6 and documents Ex C-2 to C-5 and then, closed their evidence.

6                                              In order to rebut the evidence of the complainant, Ld Counsel for OPs tendered in evidence affidavit of Aashish Gupta Ex OP-1 and documents Ex OP-2 to Ex OP-5 and then, also closed the evidence on behalf of OPs.

7                                               We have heard the ld counsel for complainant as well as OPs and have carefully gone through evidence and documents placed on record by respective parties.

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8                                     From the careful perusal of record and evidence and documents placed on record by respective parties, it is observed that case of the complainant is that complainant wanted to deposit his 16 lacs in the shape of the shape of FDR, but on advice of OP-2 that there is another scheme of bank in which interest at the rate of 7.30% is given and there is liberty to withdraw the amount midway and in that condition only 1% would be charged by the bank, he deposited Rs.16,31,000/-with them.  Complainant withdrew Rs.6 lacs on 25.03.2019 and Rs.5 lacs on 3.04.2019. On maturity on 16.04.2019, OPs paid him only Rs.5,79,104.69 and have paid him Rs.48,104.69 as interest for only one year and did not give interest at the rate of 7.30% as allured by them. OPs paid less interest on amount deposited by complainant. Grievance of the complainant is that despite repeated requests, OPs did not pay him remaining interest amount, which amounts to deficiency in service. In reply, ld counsel for OPs brought before the Forum that complainant invested his amount of Rs.16,31,000/-on 16.04.2018 in Mutual Fund Scheme  namely Axis Regular Saver Fund and Open Ended Hybrid Scheme of OPs and did not deposit his amount in Fixed Deposit. All terms and conditions alongwith risks involved in mutual funds were clearly explained to him and he was also told that mutual funds are subject to market risks and there is no assurance of returns on investment made. Any return on investment for mutual funds scheme is not obligation on Mutual Fund for providing assured returns or interest as Mutual funds do not

cc no.-149 of 2019

guarantee any fixed interest or returns and all Mutual Funds Schemes and transactions are governed by the security exchange board of India. To get the money back, Investor has to initiate redemption request, which is processed and on the basis of actual value of investment on the date of redemption. OPs processed the redemption request of complainant and gave him his amount as per procedure. There is no deficiency in service on the part of OPs and prayed for dismissal of complaint with costs.

  9                                          Ld Counsel for OPs brought before the Forum that complainant himself invested his amount in mutual fund and did not deposit his amount in fixed deposit. He placed on record document Ex OP-.3 that clearly reveals the fact that earlier in year 2017 also complainant invested his amount in mutual fund. Complainant is fully conversant with the mutual fund schemes and benefits available in markets on these mutual funds. There is also no doubt that there is no fixed interest and regular returns on mutual funds and it has also been circulated by Mutual Fund Companies through social media that mutual funds are subject to market risks and there is no guarantee for fixed interests and returns thereon.

10                                    From the above discussion and evidence and pleadings put forward by parties, it is made out that there is no deficiency in service on the part of OP-1 and OP-2. Therefore, complaint in hand is hereby dismissed being devoid of any merits. However, in peculiar

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circumstances of the case, there are no orders as to costs. Copy of the order be supplied to parties free of cost. File be consigned to record room.

Announced in Open Forum

Dated : 17.12.2019

                                      (Param Pal Kaur)             (Ajit Aggarwal)

                                      Member                                   President