DISTRICT CONSUMER DISPUTES REDRESSAL FORUM-II, U.T. CHANDIGARH

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Raghbir Singh Gill, H.No. 1027, TDI City-II, Sector 110, P.O. Landran, Mohali – 140307.

              ---Complainant

Vs.

The U.T.I. Mutual Fund, Sector 17, Chandigarh.

---- Opposite Party.

BEFORE:   SH. LAKSHMAN SHARMA          PRESIDENT

MRS.MADHU MUTNEJA            MEMBER

SH. JASWINDER SINGH SIDHU    MEMBER

Argued By:    Complainant in person.

              Sh. Ajay Kumar, Authorized Agent of Opposite Party.

PER MADHU MUTNEJA, MEMBER

1.          The instant complaint relates to delay in receipt of amount payable by the Opposite Party to the Complainant.

          The Complainant has stated that he owned units in the following mutual funds floated by the Opposite Party:

He had submitted redemption application to the Opposite Party for Sr. No. (i), (ii) and (iii) on 9.8.2012 and for Sr. No. (iv) on 16.8.2012. The Complainant had requested that all payable amounts be transmitted to his bank account only. Bank particulars had been supplied to the Opposite Party. The redemption amount of Units at Sr.No. (i) and (ii) amounting to Rs.38,502.42/- and Rs.47,204.03/- were credited into the bank account of the Complainant on 14.08.2012, but redemption amount of units at Sr. No. (iii) was sent through a cheque dated 14.8.2012 for Rs.81,508.97/-. The Complainant was very surprised about this variation. When he enquired from the Opposite Party, he was told that the amount would reach him in day or two. The Complainant came to know that an earlier request dated 27.7.2012 submitted by him to the Opposite Party for change of address had not been given effect due to which the cheque had not been delivered to him. The cheque was eventually collected by him from the office of Opposite Party on 28.08.2012 and credited to his account on 31.08.2012. For the redemption request for units at Sr. No.(iv) dated 16.08.2012, Cheque dated 22.08.2012 for Rs.81,594.53/- was also collected from the office of the Opposite Party by the Complainant. This amount was credited into his account on 28.08.2012.

          The Complainant has alleged that as per norms of the mutual funds and as promised by the Opposite Party, the redemption amount should have been received by him within four working days, but the amount was received belatedly. The Complainant has therefore filed the present complaint with a prayer that the Opposite Party be directed to pay expenses for the loss suffered in traveling and contacting the Opposite Party, besides interest and costs of litigation.   

2.          Notice of the complaint was sent to Opposite Party seeking its version of the case.

3.          Opposite Party in reply by way of affidavit of Ajay Kumar, Investor Relationship Officer, has maintained that there is no deficiency in service on the part of the Opposite Party as Complainant has received the redemption amount. Answering Opposite Party further maintained that as per SEBI Regulations, if the redemption amount does not reach within ten working days of making redemption request, then AMC shall be liable to pay 15% interest for the period of delay. A copy of SOA has also been attached as Annexure A. It is pleaded that the Complainant has submitted his redemption request on 09.08.2012 and he received the amount on 28.08.2012 after a delay of 06 days after completion of ten working days from the date of submitting redemption request and the Opposite Party is ready to pay interest as specified in SEBI Regulations for the delayed period. Opposite Party has therefore prayed for dismissal of the complaint.  

4.          Parties were permitted to place their respective evidence on record, in support of their contentions.

5.          We have heard the Complainant in person and the authorized agent of the Opposite Party and have perused the record, along with the written arguments tendered by the Complainant.

6.          The grievance of the Complainant is with regard to delayed receipt of redemption amount from the Opposite Party for unit at Sr. No. (iii) (UTI Wealth Builders Fund: Folio No. 52515379994). The amount paid was Rs.81,508.97/-.

7.          Opposite Party has placed on record SEBI Guidelines. The relevant portion, applicable to the case in hand, is reproduced hereinbelow: -

14.1.2 The AMC(s) shall be liable to pay interest @15 per cent per annum to the unit holders. AMC(s) must ensure that the interest amount due for the period of delay is dispatched of repurchase or redemption and/ or dividend is added to the proceeds when such payments are made to the investors. Such interest shall be borne by the AMC(s)

8.          Opposite Party has offered to make payment of interest to the Complainant on the basis of aforesaid regulation. As given by the Opposite Party and not denied by the Complainant, the delay in receipt of the amount is 06 days only.

9.          In the given circumstances, as the offer of the Opposite Party is on record, which is very fair, we dispose off this complaint, with a direction to the Opposite Party to pay interest @15% p.a. on the cheque amount of Rs.81,508.97/- for the 06 days of delay.

10.        This order be complied with by the Opposite Party within 45 days from the date of receipt of its certified copy, failing which the Opposite Party shall be additionally liable to pay compensation of Rs.2000/- to the Complainant for the harassment caused to him in pursuing his case to trace his cheque and get the redemption amount.

11.        The certified copy of this order be sent to the parties free of charge, after which the file be consigned.

Announced

14^th May, 2013                            

   Sd/-

(LAKSHMAN SHARMA)

PRESIDENT

Sd/-

(MADHU MUTNEJA)

MEMBER

Sd/-

(JASWINDER SINGH SIDHU)

MEMBER