February 5, 2024Anmol Nagpal

UTI Mutual Fund fined for deficiency of service

A Bengaluru consumer court fined the Managing Director and Chief Executive Officer of UTI Mutual Fund Rs 15,000 with interest for deficiency in services.

Source: ANI

A subscriber to the Unit Linked Insurance Plan (ULIP) since February 2012, filed a complaint against the CEO for a significant delay in updating the value of his investments, as per media reports.

Source: Unsplash

In a recent judgment, the court observed a service deficiency on the part of the asset management company.

Source: Freepik

Ramesh's ordeal began in April 2023 when he discovered his holdings, worth Rs 18.75 lakh were inaccurately reflected as zero.

Source: Freepik

Despite his attempts to rectify the issue, including emails and reaching out to UTI Mutual Fund, he received no response for 45 days.

Source: Pexels

Unsatisfied with the lack of communication, Ramesh escalated his complaint to the CEO Imtaiyazur Rahman, Securities and Exchange Board of India (SEBI) and the Prime Minister’s Office (PMO).

Source: SEBI

The court observed that there was a substantial delay in updating Ramesh about his investments.

Source: Republic

The judges emphasized that even though the claim of zero value was found to be false, the firm's failure to address the customer's concerns promptly constituted a lapse in service.

Source: Pixabay

In the verdict delivered on January 11, 2024, the consumer court ruled that Rahman must compensate Ramesh. Additionally, Rahman was ordered Rs 5,000 in court expenses to Ramesh.

Source: Freepik