Mangelal Sharma gets his Rs7 lakh back—another Moneylife victory
Moneylife Digital Team 18 April 2013

A strong campaign by Moneylife through its website and its social media properties gets quick justice for a 79-year old man with an ailing wife. IndusInd Bank officials had deceitfully persuaded him break his fixed deposit with the bank and invest in a wrong product
 

Yesterday, there was another knock on 79-year old Mangelal Sharma’s door. Once again, the visitors were IndusInd Bank officials from his branch. But this time, it was not to mis-sell. The bankers came—at 11.30 in the night—bearing a demand draft of Rs7 lakh covering the amount he was persuaded to withdraw from his fixed deposit and invest in DWS’s mutual fund scheme with a 5-year lock in period.
 

The bankers also came with a letter wanting Mr Sharma to transfer the mutual fund units to the bank. This time, he was careful to read the letter and after some modifications, signed a release “without prejudice”. However, as he says, with great relief, “I want to close this chapter and move on”. We agree.
 

The bank’s rare capitulation, despite Banking Ombudsman dismissive attitude, was the result of Moneylife’s aggressive stance on mis-selling of banks, specifically making a campaign of this utterly disgusting case of mis-selling. In a first reaction to our report (Read Mr Sharma’s story here: ), the bank invited Mr Sharma to visit the bank at 10 am on Wednesday. Mr Sharma, wearing his T-shirt saying, “BEWARE IndusInd Bank is a cheat. It has cheated me and may cheat you too” landed up at the Preet Vihar branch in Delhi with Veeresh Malik, activist and Moneylife’s consulting editor in Delhi to lend him support.
 

But the bank had no intention of giving in so easily. It initially refused to allow Mr Malik to be a part of the meeting, did not want the conversation recorded and would not part with Mr Sharma’s documents or give him a copy of the cheque he had signed.
 

Readers may recall that bank officials visited Mr Sharma at his residence to persuade him to invest in what they said was a Development of Wealth Scheme (DWS), a branded fixed deposit of the bank, carrying higher returns. He was even persuaded to break an existing fixed deposit to put together Rs7 lakh for the investment. It is only when he received his first statement that he realized that he has been made to buy the DWS Hybrid Fixed Term Fund Series 10 Growth, which is sold by Deutsche Asset Management India Pvt Ltd (DWS) and has a 5-year lock in.
 

“Why would a 79 year old man, with a wife who needs surgery and who is living on his savings, willfully invest in a risky mutual fund with a 5-year lock-in”, asks Mr Sharma. But shockingly, the Reserve Bank of India’s (RBI) Ombudsman did not ask this basic question, or give him benefit of doubt and dismissed his complaint. Mr Sharma then decided to resort to Gandhigiri. Moneylife, which has been writing about gross mis-selling by banks, decided to campaign for him.
 

Mr Sharma’s fault was that he trusted the bankers of IndusInd Bank and allowed them to fill in the details of the scheme instead of checking the documents himself. The fact is, most people do trust their bankers implicitly and this has been ruthlessly exploited by modern day banksters to con persons who are not financially savvy. Senior citizens and women have been big targets of such systematic mis-selling. While Mr Sharma’s story has a happy ending, the rampant mis-selling of financial products remains a serious issue and Moneylife Foundation (our not-for-profit entity) will continue to push the RBI to rein in banksters, who exploit the trust of customers and sell them dubious derivative products, insurance or induce them to invest in portfolio management schemes which trade in risky commodity products.

 

Comments
CA PRADEEP AGARWAL
9 years ago
EXPECT CHANGE ONLY IF A NEW GOVT. COMES AT CENTRE.
Michael Mason-Mahon
9 years ago
Open letter to the major shareholders and the Board of Directors of HSBC Holdings Plc


Should the major shareholders of HSBC Holdings Plc pick up the bill for restoring the reputation of the HSBC Group?

Why have the Major shareholders not forced any changes to the Board of Directors of HSBC Holdings Plc?

If the world is to believe the statements of Mr Flint, Chairman, Mr Gulliver, CEO, that they are truly sorry for the illegal and criminal behaviour of HSBC Group, let the Board of Directors show the world how really sorry the HSBC Group is.

Is the HSBC Group willing to make an act of Attrition for their illegal and criminal behaviour around the world?

Is the HSBC Group truly sorry and wanting to atone for their illegal and criminal behaviour around the world? Are they willing to pay the Price?

Is Mr Flint, Chairman, Mr Gulliver, CEO and the Board of Directors of HSBC Holdings Plc very serious about restoring the reputation of HSBC around the world?

A good start would be to show society that the HSBC Group is not only willing to atone for the past and that the HSBC Group is willing to be a great Corporate Citizen of the world.

The cost is to help the world, the hungry, the poor, the uneducated, the homeless and the sick children of the world.

The HSBC Group is willing to announce in the next 30 days that the HSBC Group will donate £3 billion to help the world and for the next ten years donate £5 hundred million every year. The £3 billion donation will be made within six months of the announcement.

Some ideas for HSBC Group.

India £ 762 Million, then for the next tens years £51 Million.

Africa £ 823 Million, then for the next tens years £56 Million.

South America £ 514 Million then for the next tens years £43 Million.

Middle East, Syria and the Lebanon 370 Million then for the next tens years £46 Million

China £ 236 Million, then for the next tens years £79 Million

The rest of the world £ 210 Million, then for the next tens years £205 Million.

Costs £ 20 Million per year.

Have the HSBC Group paid over $2 billion in fines and settlements in the USA in the last four months?

This may be too high a price for the HSBC Group to pay to restore their reputation?

By helping the world maybe, just maybe, the citizens of the world, may be able to start to forgive the shameful behaviour of the HSBC Group and the behaviour of Board of Directors of HSBC Holdings Plc that were Board members while this illegal and criminal behaviour was going on.

Concerned shareholder

Regards
Michael Mason-Mahon
Mobile: 0044 7834763544
Mobile: 0044 7448770801
E-mail: [email protected]

"First they ignore you, then they ridicule you, then they fight you, and then you win."
Michael Mason-Mahon
9 years ago
Open letter to the major shareholders and the Board of Directors of HSBC Holdings Plc


Should the major shareholders of HSBC Holdings Plc pick up the bill for restoring the reputation of the HSBC Group?

Why have the Major shareholders not forced any changes to the Board of Directors of HSBC Holdings Plc?

If the world is to believe the statements of Mr Flint, Chairman, Mr Gulliver, CEO, that they are truly sorry for the illegal and criminal behaviour of HSBC Group, let the Board of Directors show the world how really sorry the HSBC Group is.

Is the HSBC Group willing to make an act of Attrition for their illegal and criminal behaviour around the world?

Is the HSBC Group truly sorry and wanting to atone for their illegal and criminal behaviour around the world? Are they willing to pay the Price?

Is Mr Flint, Chairman, Mr Gulliver, CEO and the Board of Directors of HSBC Holdings Plc very serious about restoring the reputation of HSBC around the world?

A good start would be to show society that the HSBC Group is not only willing to atone for the past and that the HSBC Group is willing to be a great Corporate Citizen of the world.

The cost is to help the world, the hungry, the poor, the uneducated, the homeless and the sick children of the world.

The HSBC Group is willing to announce in the next 30 days that the HSBC Group will donate £3 billion to help the world and for the next ten years donate £5 hundred million every year. The £3 billion donation will be made within six months of the announcement.

Some ideas for HSBC Group.

India £ 762 Million, then for the next tens years £51 Million.

Africa £ 823 Million, then for the next tens years £56 Million.

South America £ 514 Million then for the next tens years £43 Million.

Middle East, Syria and the Lebanon 370 Million then for the next tens years £46 Million

China £ 236 Million, then for the next tens years £79 Million

The rest of the world £ 210 Million, then for the next tens years £205 Million.

Costs £ 20 Million per year.

Have the HSBC Group paid over $2 billion in fines and settlements in the USA in the last four months?

This may be too high a price for the HSBC Group to pay to restore their reputation?

By helping the world maybe, just maybe, the citizens of the world, may be able to start to forgive the shameful behaviour of the HSBC Group and the behaviour of Board of Directors of HSBC Holdings Plc that were Board members while this illegal and criminal behaviour was going on.

Concerned shareholder

Regards
Michael Mason-Mahon
Mobile: 0044 7834763544
Mobile: 0044 7448770801
E-mail: [email protected]

"First they ignore you, then they ridicule you, then they fight you, and then you win."
manoharlalsharma
10 years ago
Every person should take lessons from MANGI LALJEE and EXPOSE..
mohammed faisal
10 years ago
last ten year in my mutualfund and life insurance advisory business hundered of case i face from my client for mis selling and mis beviour and finally closed or withdraw or surender scheme and investor finally to pressure to forget money which put by them by worong advising,

i would like to inform money life that you are saying that in bank old person and female were targeting but sir this is worong in india 70% of people is low educating or non educating and have cremy layer category also belong in above mention % that means person who belong lower eduation and non education they face 80% problem mis selling in life insurance with non refundable money case like first year premium paid and say after three year get handsome return or per month income so and so ,

investor also doing big mistake in that case how much commission would like to offer to me for buy a life policy and they ignore everthing lieu of commission and take policy,

investigation by me that 70% life insurance advisor was realitive of investor or friend or bank offer,
need to record audio and video for selling policy like trading call record before put order,


regards
mohammed faisal
financial advisor
( mutual fund and life insurance advisor )
Dayananda Kamath k
Replied to mohammed faisal comment 10 years ago
it appears that everybody is sales agents for gadgets.everybody is worried about preventing rather than punishing the wrong doer. if you punish the wrong doer appropriately and fast that will prevent such things.by all these rules you may have to move with hidden camera voice recorder and remote access and recordings. for catching 1% of culprits you are punishing 99% of innocent people. and making them feel criminal.
Michael Mason-Mahon
Replied to Dayananda Kamath k comment 10 years ago
The best way of dealing with mis-selling is very simple.

1) When a sale person has made a sale, if this has been done on a visit then the company has to contact the person within seven days.

2) The company has to go through the full appilcation and what the person has signed up to.

3) All these interactions with the customer must be recorded.

There are many ways a company can make sure these illegal practices are stopped.
Michael Mason-Mahon
Replied to mohammed faisal comment 10 years ago
Mohammed
May I say you are right, this is mis-selling, any mis-selling is fraud.
Under the Indian Penal Code Section 52. “Good faith”.- Nothing is said to be done or believed in “good faith” which is done or believed without due care and attention.

How many people's lives have been ruined because people are not being HONEST
Rajeev Kapur
10 years ago
HDFC Standard Life tops complaints chart
Last updated on: April 24, 2013 13:42 IST
Rediffmail.com
CA PRADEEP AGARWAL
Replied to Rajeev Kapur comment 10 years ago
No Doubt about it, the service of HDFC Standard Life is very bad as per reports.
HN SHARMA
10 years ago
In a recent case in Nashik, Mr. Hirenkumar Narendra Patel (age 37 Yrs) had taken a ICICI Lombard Safe Home Policy for 5 years. This policy was taken in January 2008. On 14th October 2012, Mr. Hirenkumar Narendra Patel had died due to Dengue (Multiple Organ Dysfunction), a root cause of Mosquito Bite.

During May 2012, The Consumer Forum of North Delhi District passed an order that the Death due to Mosquito Bite will also be considered as an Accidential Death for Insurance Benefits.

In the instant case, ICICI Lombard has rejected the claim submitted by Mrs. Kalpana H Patel, the legal heir of the deceased stating that ICICI Lombard is not in a position to process the claim.

Please advise us for our further course of action so that the spouse of the deceased may process the case as early as possible to get the financial dues against the dues of her late husband against the policy.

Regards,

HN Sharma
Nashik
09960727459
Email - [email protected]
[email protected]
CA PRADEEP AGARWAL
Replied to HN SHARMA comment 10 years ago
Actually these private Banker's and Insurance Companies find ways to reject the claim.

The claim along with relevant papers be filed with the Insurance Omudsman as well as IRDA should also be made a party since IRDA is said to be looking after the welfare of claimants
CA PRADEEP AGARWAL
10 years ago
unless we all, correct ourselves and greed should be left behind and we should be happy with what we earn and in case needed more should try to obtain by legitimate
means-then only we can see a bright future and no case like Mr Mangelal's will figure.AND ALSO HAVE GUTS TO SAY NO TO WRONGDOINGS.
Dayananda Kamath k
10 years ago
if the ombuds man or rbi has taken action promptly to make the bank understand its folly this would not have gone to such a level. but cannot rbi now ask the bank to verify and compensate all the depositors who have been deprived of their savings.not in one bank but in all banks. in banks, even though its is due to fault of their systems or wrong interpretation the customers are over charged, they do not credit every customer who has suffered. it is credited to only those customer who have claimed. is is not the duty of regulator to enforce this.
CA PRADEEP AGARWAL
Replied to Dayananda Kamath k comment 10 years ago
Have they ever done this themselves, that they will do now(compensation to depositors) for Govt they dance to their tune(Banks).
S BHASKARA NARAYANA
10 years ago
Kudos to the money life team. Well done job. Even the RBI's OMBUDSMAN could not solve the problem. The team used the new technique "name and shame", similar to that of Bank's weapon on loan defaulters.

But, Most of us do not read the terms, even read do not resist to oppose the negative points and being trapped by the lure of the agents/staff. Lastly feel shy to make hue and cry
GOVIND GOPAL SHANBHAG
10 years ago
Hey - congratulations and all the best. In fact your follow up has resulted in quick justice and I never expected Indusind bank will react so fast. Please keep it up.
Padmakumar S
10 years ago
Dear Friends,
This is really good support done by MLF.
My case is different. ICICI bank,Tower band,Mumbai used my PAN card details and opened an A/C in the name some X minor. Then they Transacted Rs.4.9Crores. Then A/C was closed. It was Happen in 2008.
IT dept ask me to prove this money not belongs to me. it took SIX long month any many visits to IT dept.Finally Proved that that money not belongs to me and bank has used my PAN to open an A/C.
Then i approched EOWing,Chennai againest Bank,they said this happen in Mumbai.Go to Mumbai and make a compline.It is not possible for me.
Then i approch RBI BO,Mumbai,they said your bills address is Chennai.So you make complient in RBI-BO,Chennai.
I send a letter(Reg.POST) to Nodel officer,ICICI Bank,Mumbai.
It was return.Reason"Person Not in PLACE".
So my humbble reqest to ALL is "DO NOT BELIVE RBI" They are the FIRST CRIMINALS with ALL POWERS.
Regards,
PADMAKUMAR.S
Dayananda Kamath k
Replied to Padmakumar S comment 10 years ago
i am really surprised that rbi ombudsman has asked to you to approach chennai office. normally they themselves forward it to the concerned office of the ombudsman. but in my case since gurgaon comes under ncr it come under delhi office of onbudsman. but since gurgaon is in haryana they will send it to chandigarh office and chandigarh office will inform that it will not come under their jurisdiction. so both the ombudsman have closed the case. this is how ombudsman function.
VIKRAM GAJJAR
10 years ago
i AM HAPPY TO LEARN THIS REAL LIFE INCIDENT.
IN GENERAL ALL SO CALLED PRIVATE BANKS ARE OPERATING IN THE SAME WAY.SEEMS THE ARE RUTHLESS AND CUSTOMERS INTEREST ARE LESS THAN PRIME.THEY TRAIN THERE STAFF TO "HOW TO MISS SELL A PRODUCT".ONE OF THE BANK STAFF ONCE SAID THAT THERE MANAGERS PUSH THEM TO SELL HIGHEST COMMISSION PAYING PRODUCT TO THE CUSTOMERS, E RESPECTIVE OF CUSTOMERS STATUS/AGE/NEED ETC...IGNORE EVERY THING ...JUST SELL. THIS THE BUZZ WORD.MORE OVER UNDER THE DISGUISE OF EFFICIENCY THEY ARE THE MOST INEFFICIENT STAFF.FOR THEM EVERY CUSTOMER IS A "BAKARA" AND THEY ARE READY TO SLAUGHTER.
ONCE AGAIN ,KEEP UP THE GOOD WORK 'MONEYLIFE'
G N GHOSH
10 years ago
CONGRATS TO MONEY LIFE TEAM TO HELP A SENIOR CITIZEN TO GET HIS RIGHT.
BUT DON'T BE COMPLACENT BY THIS VICTORY I WISH YOUR MOVEMENT AGAINST THE MISS SELLING BY BANKS SHOULD CONTINUE TILL THE REGULATOR COMES WITH PROPER RULES TO CHECK THE FRAUDULENT ACTIVITIES BY THE BANKS. IT HAPPENS EVERYDAY WITH ALL TYPE OF CUSTOMERS (MAJOR WITH SENIOR CITIZENS).
IN MY EARLIER COMMENT I SUGGEST TO BAN BANKERS TO SALE ANY TYPE OF THIRD PARTY PRODUCTS LIKE- MUTUAL FUND,INSURANCE,GOLD,SHARE TRADING INSIDE THE BANK BRANCH OR PREMISES , EVEN NOT IN THE SAME BUILDING WHERE THE BANK IS SITUATED AND SHOULD NOT USE THE DEPOSITORS CONFIDENTIAL DATA TO CROSS SALE OTHER PRODUCT.
CA PRADEEP AGARWAL
10 years ago
But, as seen sometimes the Banks force indirectly to carry out Insurance and to meet set targets, it generally happens with business
clients because in a way they are indebted to the BM by way of OD, etc.................BEST IS BAN BANKS FROM CARRYING OUT INSURANCE POLICIES OF CLIENTS OF BANK.
Free Helpline
Legal Credit
Feedback