When you believe that a 'BANK' can be your 'FINANCIAL CONSULTANT'...!!😥
Suchitra married Shekhar in 1997, got divorced after a decade & received few crores in alimony as a means of livelihood for herself & for her daughter.
Her bank sniffed out the hefty deposit in her Savings account & enticed her into its PMS promising 24% returns P.A.
She trusted her banker & handed over Rs 3.60 crores, by signing a POA that is akin to signing one’s own death warrant, as it authorizes the bank to do whatever it pleases with the client's money.
The money was now available both for investments & insurance and the bulk of it found its way into ULIPs. There was a toxic churning from one scheme to another to maximize front-loaded commissions.
Result after five years:
- 83 lacs direct loss from investment,
- 29 lacs commission paid to the bank,
- 8 lacs lost from an insurance policy,
- 10 lacs valuation decline in another insurance policy,
- 4.5 lacs STCG tax (including 1.85 lacs penalty to the IT department due to non-disclosure of gain by the bank to her)
- 58 lacs interest on home loan earned by the bank.
When she wished to surrender her insurance policies, the bank didn't act by contending that they no longer had any tie-up with Tata AIG.
Her appeal to the Economic offences wing was dismissed.
Market watchdog, the SEBI intervened & found that the money was invested in 38 different funds, & many of them were 'not in line with her risk profiling'.
SEBI issued a strongly-worded show-cause notice to the bank on why it should not be barred from accessing securities market for 'fraudulent churning' on a complaint from actor Suchitra Krishnamoorthi.
Finally, her losses were 'amicably settled' after a four-year long battle with the global banking major.
If a well-known celebrity could be cheated in such a way, it is surely happening routinely with others.'
Leave a tidy sum in the bank account and you will start getting calls for insurance policies. You opt for them in lure of big returns, safety, security and finally you yourself gift your wealth to the insurance company.
