Arjun Khanappanavar
Asked February 09, 2017

Option for a Consumer Complaint

  • 2 Answers
  • 1176 Views

I would like to know where i can file case for Loss & Compensation against Zerdoha Securities Bangalore apart from SEBI & NSE as NSE & SEBI don't give compensation. Can you file consumer case as we take service from this broker as we pay brokerage charges & AMC (annual maintenance charges) Please guide me where i can go ahead & I want file PIL to know why SEBI kept loophole of Software Glitch issues can't be claimed as loss as Software owner is responsible all malfunction IBT system. ALL share broker using this loophole to do unwanted transaction and say its software issue so we can't do anything the order executed because software glitch . Description of Case : I am attaching screenshots and contract, email written complain raised on 25-Jan-2017 for margin block from my account even those i had no open position nor had any pending orders placed to block my margin entire day they din't replied why it was blocked​ and even i had asked one call to release my margin by clearing any pending orders which i was not seeing in software,​ Even in execution screenshot & position open screenshot of that which i took after markets their ​are no orders executed which are seen ​on ​Contract note which i received from them next day, Even you can see i din't tried to place those orders which are executed as per contact note if those orders were open than why they din't said you have open position because of which your margin blocked & to place this orders i think requires more margin than available in my account as BHARTIARTL 6800 QTY lot placed before​​ square off other position as per contract trade time, But this orders are not executed from ​my ​end nor i was aware of this trades, as you can see in attached screenshot captured at end of day after market & during market hours. ​The software which i used has no such transaction history which can be seen on CONTRACT note of that day nor After market i took screenshot midnight still i din't see this position i took this screenshot because i felt something phishing when i received transaction msg alert from NSE at 08:41 PM in night happend on my account, But still i was not seen such transaction on Zerodha Software used i received contract note next day.​ Entire day from my 1st call 8:48 AM i just confirmed about margin block, unable to sqaure off my open position they never gave reason behind my margin block or why i was not able to square off open which requires no margin to close. They just played with my fund & kept all silent & hidden from me. This orders seen ​on ​contract notes are trad​ed​ without​ my​ knowledge ​or consent & even when i ​raised complained about margin block they never said this orders are open when i said check if any pending orders​​ or open position. Even after market at midnight this order were not seen in software or even one my last call of day or they never answered my complain of margin block. ​When i checked backoffice software ​of Zerodha my account was in Negative Balance of -56073/- on same day i.e 25-Jan-2017, I would like know here why my account was in Negative on 25-Jan-17 as i had not traded any trades which laid to deduction in my account and if i was having shortfall of margin why this transaction done which requires margin to execute as have was not having enough margin to execute 6800 qty of Bhartiartl future. They have kept this transaction hidden from even when i called their support team & even raised complain through email in written for margin block from account, But they just kept hidden this transaction i was never seen this transaction on software in open position or in executed list. In ledger balance you can see i have been charged on 30-Jan-17 for call & trade, i had not called them that day than how they can charge me for CALL & TRADE, they have manipulated all contract notes & software which laid to huge loss, They have no responsibility to take care of client fund they do false deduction & transaction without my knowledge or awareness. Attaching screenshots which i took after receiving NSE alert msg of transaction done on that day that i felt something phishing & something occurred without my knowledge & those transaction were hidden from me & also not shown on IBT system, Support Team even after so many inquiries about margin block. this has washed my ​enitre amount​, i​ do​n't really understand this manipulation, Trap, negligence or any other issue with zerodha i only request please help me to claim my loss as this​ is​ not market loss this ​done without my knowledge or awareness​,​ ​T​h​e​se orders which are executed ​on 25-Jan-2017 kept hidden from IBT system of zerodha​ which we use & also thier support team never informed when i raised question of my margin block​. It's totally manipulation or negligence of zerodha team but i am going through mental pain & shock because of this incident my account balance has been wiped more Than 3 Lakhs account balance and still its running in negative all this happend recentaly after taking so much followup they never resolved issue instead they raised it extreme level where my recovery is very difficult from this mental shock. Please t​a​ke ​strict action against ZERODHA securities as they are not able handle client fund ​safely and misused ​& manipulated transaction, unkwon transaction traded​,​ they are very negligence to handle fund, they are not suitable operate such critical live market. H​oping for justice ​and fair decision from NSE Team as they are only people to crack down such manipulation fraud transaction.

Answers 2

 

Dear Arjun Khanappanavar,

I understand the issue as well as your agony. It is a fit case for consumer complaint but i strongly suggest that you settle the matter with them as it will be bring fruitful result in short time compared to lodging of complaints in diffent forums. Though you might feel satisfied by filing complaints in different forums, claiming compensation through settlement will be handy and helpful at his juncture. Food for thought.

Agree Comment 0 Agrees over 3 years ago
  • Default avatar
    Arjun Khanappanavar
    Through settlement they are not agreeing for anything i had lossed 3.5+ Lakhs please tell can i claim for Software glitch & technical issue in consumer court
    Agree 0 Agrees over 3 years ago

  • Default avatar
    Yes. You can file a consumer complaint as a consumer. It is for them defend their case portraying as something beyond control which is claimed to be a sudden technical issue in the software. They have to prove it. And as a consumer you have every right to claim compensation for the loss incurred due to their act. However, i still insist you to take the alternative course such as negotiation, arbitration, mediation etc. The same is also available online. You can also check http://legalreferee.com/. All the best.
    Agree 0 Agrees over 3 years ago


Under the Consumer Protection Act, any goods or service provider can be sued for providing defective goods or for spurious good or service. Section 2(o) of the Consumer Protection act defines Service as “service of any description which is made avail­able to potential users and includes, but not limited to, the provision of  facilities in connection with banking, financing insurance, transport, processing, supply of electrical or other energy, board or lodging or both, housing construction, entertainment, amusement or the purveying of news or other information, but does not include the rendering of any service free of charge or under a contract of personal service”

Further it has been held  in the case of Tata Consultancy Services vs State Of Andhra Pradesh (2005) 1 SCC 308  that Software can also be considered a good as meaning of goods are not only restricted to tangible goods but also extends to intangible goods. This principle has been reiterated in numerous other cases of  Bharat Sanchar Nigam Limited and another v. Union of India and others(2006) 3 SCC 1 etc .

 Further in the case of Infotech Software Dealers Association Vs. UOI[1], the Supreme Court has held that the imposition of Service tax on Software is completely valid. Although Software is considered a good but in agreements where the user is only allowed to use the Software in a limited way and the IP of Software is retained by the owner, it cannot be considered a sale or a deemed sale. The licencee could not sell, license or distribute copies of the software and did not acquire any right to do so. Thus Zerodha Software can be considered a Service provider and you can proceed against them under the Consumer Protection Act.

 

Sources:

http://www.business-standard.com/article/economy-policy/is-supply-of-software-a-sale-or-a-service-110090600038_1.html

 

 

[1] https://indiankanoon.org/doc/597256/

Agree Comment 0 Agrees over 3 years ago
  • Default avatar
    Arjun Khanappanavar
    Please I need your guidlinace.. Can you help to file Case I am reachable on 7030397975
    Agree 0 Agrees over 3 years ago


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