[Resolved]  Icici Direct — Delay in payments and excess Service Charges

This is third instance of deficiency in Service in a span of 1 month by ICICI Direct:


I had purchased on August 14, Kotak Floater Long Term-Daily Dividend and TATA Floater Fund - Daily Dividend. However, I was charged Rs. 100 plus Service Charges for each transaction.


Complaints: I had categorically asked via mail whether Service Charges are applicable on Debt Schemes. To which I was replied that it is not applicable on liquid schemes. I suppose the answer was deliberately answered in a vague manner that these are not applicable to liquid funds. Why was it not specifically replied that it is applicable on debt schemes though there was no entry load earlier. When I even contacted Customer Care Executive to cancel the transaction immediately after I came to know of the debit of Service Charges through SMS from ICICI Bank, I was told nothing could be done.


How can Service Charges be levied on mutual funds on which there were no entry load/service charges earlier? What additional cost is incurred by you which was not incurred earlier? Why the amount of Service Charges is not shown as debit at the time of making transaction? You would appreciate that the very purpose of investment in debt/liquid fund is short term investement and to encourage that only no entry load was charged by mutual funds even during entry load regime.


In first instance, an amount of Rs. 45, 000 was debited from my account on July 9, 2009 for purchase of ICICI Prudential Flexible Income Plan Regular Daily Dividend was rejected with reason that it was for less than minimum amount.


Complaints: Why was it accepted in the first instance and why the amount was refunded as late as July 20, 2009 and that too after repeated follow up. It should not have been accepted by you at all if it was not permitted and why there was delay in crediting refund. Your customer care executives even refused to entertain request prior to expiry of 7 days from date of request.


In the Second Instance, I made request for redemption of Reliance Liquid Fund - Cash Plan - Daily Dividend on July 28, 2009 for amount of Rs. 70, 078.19 but the amount was received on August 3, 2009. The reason for delay, I was informed was that direct credit facility was initially rejected due to closure of account. On enquiry I was told that my earlier account derails were not updated with AMC.


Complaints: It is specifically flashed at the time of acceptance of redemption order that it would be competed within 1 business day. How is this possible that my account details were not updated with AMC since, I had purchased these mutual funds only a month ago and the reference of account details of the account closed details that your customer care executives were giving was closed more than a year ago. Though your Customer Care Executive admitted on phone that mistake was committed by you, however, reply to mail was vague that query has been attended telephonically. Why should a mistake not be admitted if made.