DIST.CONSUMER DISPUTES REDRESSAL COMMISSION, KHURDA, BHUBANESWAR:

                                                -ooOoo-

C.C.CASE NO. 443/ 2017

Mohammed Ansarul Haque, S/o Late Mohammed Ibrahim,

Age- 68 years, HIG-12, K5, Lane-3, Kalinga Vihar,

Bhubaneswar – 751019

….     Complainant             

-Vrs.-

Head, Customer Care,

Reliance Mutual Fund, 11^th & 12^th Floor, one India Bulls Centre,

Tower 1, Jupiter Mills Compound, 841, Senapati Bapat Marg,

Elphinestone Road, Mumbai – 400013

                                                                   ….     Opp. Party 

For the complainant      :         In person

For the OP                     :         Exparte

DATE OF FILING         :         18/12/2017

DATE OF ORDER        :         05/06/2023

ORDER

S.TRIPATHY, MEMBER 

1.       This Consumer Complaint is filed  U/s 12 of the C.P.Act, 1986  by the complainant,  alleging deficiency in service against the OP (Reliance Mutual Fund).

2.       The brief  contention of the complaint is that, the  complainant purchased  Reliance Infrastructure Fund  of Rs.1,20,000/- on 01/07/2009 and one Reliance Diversified Power Sector Fund of Rs.24,000/- on 04/08/2009 from the OP. On 04/06/2015, the complainant got to know that his funds have been merged with a sick fund from 07/09/2013 without his consent  and knowledge by RMF, as a result of which, he suffered a loss of Rs.87,411/-. As per  SEBI circular No: SEBI/MFD/CIR No. 05/12031/03 and pursuant to regulation 18 (15A) of the SEBI (Mutual Funds) Regulations, 1996, a change in fundamental attribute in the scheme requires a written communication about the proposed change to be sent to each unit holder and the unit holder is to be given an option to exit within a period of 30 days. In this case, the exit option was given from 8^th August, 2013 till  6^th September, 2013. The matter for not intimating  the complainant for exercising the exit option and carrying out the merger  without complainant’s knowledge was complained to SEBI vide his letter dated 29^th July, 2016. The complaint was  closed on 23/03/2016 by SEBI with remarks that, “the mutual fund has stated that an exit option has been provided to the unit holders of the scheme during a period of 30 days and that exit option had not been used. When the complainant enquired about this matter with the Reliance Capitals Asset Management Ltd., he came to know that the addendum of the merger was  sent to their local office, Bhubaneswar. But nobody from the local office intimated to the complainant  before the merger even though  his e-mail  ID was duly registered with  RMF. Had he been intimated before merger, he would have switched to some other better fund exercising his option during the exit  period. Due to this deficiency of service on the part of the OP  the complainant’s interest  could not be safe guarded and the merger of  his investments was done illegally without taking his prior consent, which made him suffer  loss. Being aggrieved by this, the complainant decided to get justice from this Commission.    Hence this complaint.

3.       On the other hand, the OP appeared before this Commission and filed  his version. As he did not participate in the hearing, he was set exparte.

4        The brief contents of written version are as follows:-

        All the allegations  and claims  made by the complainant have been denied by the OP in  his version. Further,  it is claimed that the complaint is baseless and neither maintainable in law nor on the facts of the case. It is contended by the OP in his written version that, the complainant had made certain investments in Reliance Infrastructure Fund. The Board of Directors of RNAM and Reliance Capital Trustee Co. Limited i.e. Trustee to RMF   decided and approved the change in the fundamental attribute  of Reliance Diversified Power Sector Fund and a subsequent merger of Reliance Infrastructure Fund into Reliance Power Sector Fund with effect from 7^th September, 2013. SEBI had also accorded “No Objection”  to the aforesaid proposal. In view of the above proposal, the OP published  an advertisement in the form of notice -cum- addendum   in “The Financial Express” and “Navshakti” on 2^nd August, 2013. Accordingly, all the investors of Reliance Diversified Power Sector fund and Reliance Infrastructure Fund had been given an exit option to exit the respective schemes by sending a valid redemption request.  The exit option was valid for a period of 30 days from 8^th August, 2013 till 6^th September, 2013. Subsequently, an email was also sent  on 2^nd August, 2013 on the mail address of the complainant which was registered with the OP informing about  the details of the aforesaid  proposal. Despite prior intimation, the complainant did not exercise the exit option and it was deemed that he had consented  to the merger without  raising any objection. 

    So, the complainant’s allegation against the OP about the non-intimation of the merger and not giving  him ample opportunity for the exercise of exit option are completely false & baseless.   Hence this complaint deserves no consideration and is liable to be dismissed in the interest of justice.    

5.       On  perusal of the  materials available on case record,  it is  not in dispute  and an accepted fact by both the  parties that, the complainant  had invested some money in Reliance Infrastructure Fund. The main point of dispute  in this present complaint is that, the OP has merged the funds of the complainant  into a sick fund without prior intimation  and his consent for the merger, as a result of which, the complainant  suffered loss of Rs.87,411/-.  Now, the question which is to be  decided  by this Commission is whether the OP is negligent  in discharging its service or not. On a careful verification of the documents, it is noticed that, prior to the merger, there is a 30 days period of redemption from 8^th August, 2013 till 6^th September, 2013 which gives an opportunity to the complainant to exercise  “his exit option”  right. Also, it is noticed from Annexure -10 that, a mail; has been sent regarding this intimation to the complainant and the complainant has also viewed that mail. Further, it is established From Annexure-8A that,  a notice cum-addendum in respect of the merger has also been published in “The Financial Express” and Navshakti” in 2^nd August, 2013. All these indicate that OP has taken all possible steps to intimate regarding the merger to the complainant. But, due to some reason or other, the complainant could not exercise his option to exit from the merger and the OP went ahead  to merge his funds. So, the OP can not be held liable for the loss of the complainant as there is no deficiency in service  on the part of the OP. Hence, it is ordered.       

ORDER

The complaint is  hereby  dismissed exparte  against the OP being devoid of merit.

The order is pronounced on this day the  5^th June,  2023  under the seal & signature of the President and Member (W) of the Commission.

                                                                            (S.TRIPATHY)

                                                                               MEMBER(W) 

Dictated & corrected by me

           Member ( W) 

                                                                             I agree

                                                                                                                                                 President   

                                                                             (K.C.RATH)

Transcribed by Smt. M.Kanungo, Sr.Steno