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Submit your complaint →Advocate Sunny Arora from the Delhi High Court exposes a serious issue with Paytm Gold, where users are reportedly receiving 10–20% less payout than their invested amount. He plans to take collective legal action on behalf of affected investors. Choice4Voice.com investigates the case, explains legal remedies, and guides victims on how to join the action against Paytm Gold.
Advocate Sunny Arora Raises Legal Action Against Paytm Gold for Major Payout Discrepancies
Author Details
Complainant Name: Advocate Sunny Arora
Profession: Legal Officer, Cyber Attorney, Delhi High Court
Complaint Type: Financial Misrepresentation / Investment Discrepancy
Company: Paytm Gold
Platform: LinkedIn
Status: Preparing collective legal action
Complaint Summary Table
| Details | Information |
|---|---|
| Complainant | Advocate Sunny Arora |
| Profession | Legal Officer & Cyber Attorney |
| Company/Platform | Paytm Gold |
| Issue Type | Payout discrepancy / Financial Misrepresentation |
| Loss Reported | 10–20% less payout than actual investment |
| Status | Preparing Consumer Court case |
| Complainant’s Location | Delhi |
| Key Concern | Unexplained deduction in gold SIP withdrawals |
| Company Response | None reported |
Overview of the Complaint
In a strongly worded post on LinkedIn, Advocate Sunny Arora, a practicing lawyer at the Delhi High Court, has accused Paytm Gold of financial discrepancies and misrepresentation.
According to his statement, numerous users who invested in Paytm Gold through daily SIPs are facing payout mismatches of up to 20% less than the invested amount. While the app accurately reflects investment and profit values, the actual withdrawal amount is significantly lower, raising serious questions about transparency and accounting practices.
The issue has allegedly persisted for months without any official clarification from Paytm or Paytm Gold’s parent entity, One97 Communications Ltd.
Advocate Sunny Arora’s Statement
“People are investing their hard-earned money in Paytm Gold believing it’s a safe, transparent platform.
The app shows correct investment and profit but when withdrawing, users get 10–20% less!
This is not an isolated glitch. it’s a recurring issue, and I’m preparing to initiate a Consumer Court case on behalf of multiple affected investors.
It’s time to hold corporations accountable for the trust they break.”
— Adv. Sunny Arora, Delhi High Court
Choice4Voice.com Investigation
Choice4Voice.com reviewed multiple user discussions and verified that Paytm Gold has received numerous similar complaints on public forums and consumer platforms.
Key findings include:
- Users consistently report discrepancies between displayed and actual payout amounts.
- The Paytm Gold transaction dashboard lacks transparency regarding live market price at redemption.
- There is no automated breakdown explaining deduction in withdrawal value.
- Customer care responses are often generic and non-committal, citing “market price fluctuation.”
These findings suggest potential breach of consumer trust and possible violation of investment transparency norms.
Possible Reasons Behind the Discrepancy
| Possible Cause | Description |
|---|---|
| Spread Difference | Paytm may be applying buy/sell price differences, resulting in lower returns. |
| Hidden Transaction Fees | Deduction of small charges during redemption not shown clearly on the app. |
| Price Lag | Delay in live gold price updates may cause mismatch in redemption value. |
| Data Display Bug | Incorrect profit percentage shown on the user interface. |
| Non-disclosure of Policy | Terms of “buy-back” price or sale spread not transparently mentioned. |
Regardless of the cause, such non-disclosure constitutes misrepresentation under the Consumer Protection Act, 2019.
Applicable Legal Provisions
| Act / Regulation | Relevant Section | Implication |
|---|---|---|
| Consumer Protection Act, 2019 | Section 2(47) | Misleading representation or unfair trade practice. |
| Information Technology Act, 2000 | Section 66D | Online financial deception or fraud through digital medium. |
| RBI Master Direction on Prepaid Instruments | Clause 7 | Platforms dealing with investment products must ensure transparency and proper disclosure. |
| SEBI (Investment Advisors) Regulations, 2013 | Clause 15 | Misleading investment information can attract legal liability. |
How Choice4Voice.com Can Help
Choice4Voice.com provides legal and procedural assistance to victims of such digital financial misconduct by:
- Verifying and publishing genuine complaints to alert authorities.
- Helping users file structured complaints with RBI and SEBI.
- Drafting Consumer Court petitions for collective redressal.
- Connecting victims to legal experts like Advocate Sunny Arora for class action cases.
How Affected Paytm Gold Users Can Take Action
1. Gather All Transaction Records
Download your Paytm Gold investment and withdrawal history from the app. Take screenshots showing the discrepancy.
2. Send a Written Complaint to Paytm
Email: grievance.officer@paytm.com
Subject: Discrepancy in Paytm Gold SIP Payouts – Immediate Resolution Required
Template:
Dear Paytm Team,
I have noticed a serious discrepancy in my Paytm Gold investment. The payout amount is 10–20% less than the invested value displayed in the app.
Kindly investigate this issue and provide a transparent calculation report within 7 working days.
If unresolved, I will escalate this matter to the RBI Ombudsman and SEBI.
Regards,
[Your Full Name]
[Registered Paytm Mobile Number]
3. File a Complaint with RBI Ombudsman
Visit: https://cms.rbi.org.in
Category: Digital Wallets / Prepaid Instruments – Investment Discrepancy
4. Approach SEBI Online
If the product is offered under a gold investment scheme, lodge a complaint at:
🔗 https://scores.gov.in
5. File a Complaint on National Consumer Helpline
Visit: https://consumerhelpline.gov.in
Or call: 1915
Departments & Authorities to Contact
| Authority | Purpose | Website |
|---|---|---|
| Paytm Grievance Cell | Internal escalation | https://paytm.com/grievance |
| RBI Ombudsman | For digital payment frauds | https://cms.rbi.org.in |
| SEBI SCORES Portal | For gold/investment-related disputes | https://scores.gov.in |
| National Consumer Helpline (GOI) | For general consumer grievance | https://consumerhelpline.gov.in |
Choice4Voice.com’s Recommendations for Paytm
- Issue an official public clarification explaining the cause of payout discrepancies.
- Provide detailed transaction breakdowns for each gold SIP withdrawal.
- Ensure transparent price updates linked to live gold market rates.
- Offer refunds or compensation where misrepresentation is proven.
- Enhance consumer support with escalation tracking and accountability.
Conclusion
The complaint by Adv. Sunny Arora highlights a potentially serious flaw in Paytm Gold’s payout process, affecting numerous Indian investors. If proven, this case could set a major legal precedent for digital gold investment platforms in India.
Choice4Voice.com urges Paytm to conduct an internal audit, address the payout irregularities transparently, and issue an immediate clarification to all users.
Consumers are encouraged to retain evidence, file official complaints, and avoid unverified gold investment channels until proper resolution is ensured.
Q&A Section
Q1. What is the complaint against Paytm Gold by Advocate Sunny Arora?
A. Users are receiving 10–20% less payout than their invested gold amount during withdrawals.
Q2. Who is Sunny Arora?
A. A practicing Advocate in the Delhi High Court and a Cyber Attorney representing multiple clients in consumer and financial law matters.
Q3. How are users affected by Paytm Gold?
A. The displayed profit percentage and actual withdrawal value do not match, leading to financial loss.
Q4. Has Paytm responded to these allegations?
A. No official clarification or statement has been issued yet.
Q5. What legal action is being taken?
A. Advocate Sunny Arora is preparing a collective Consumer Court case on behalf of affected users.
Q6. How can victims contact Advocate Sunny Arora?
A. Affected users can reach out to him via LinkedIn for class action participation.
Q7. What laws protect digital gold investors in India?
A. The Consumer Protection Act, SEBI Regulations, and RBI Directions on digital instruments.
Q8. Is Paytm Gold regulated by SEBI or RBI?
A. Digital gold is not directly regulated by SEBI/RBI but must follow KYC, disclosure, and transparency norms.
Q9. How can users check discrepancies in their Paytm Gold account?
A. By comparing investment and withdrawal details in the Paytm transaction history.
Q10. What is the RBI Ombudsman’s website for filing complaints?
A. https://cms.rbi.org.in
Q11. Can Paytm Gold users demand refunds?
A. Yes, if proven that the payout was misleading or incorrectly calculated.
Q12. What is SEBI’s role in this matter?
A. SEBI may intervene if investment misrepresentation or violation of advisory norms is found.
Q13. How to raise Paytm complaints officially?
A. Through the Paytm grievance portal or email to grievance.officer@paytm.com.
Q14. What documents should be attached in complaints?
A. Screenshots of app balance, payout amount, and transaction history.
Q15. Is this considered financial fraud?
A. If intentional concealment or manipulation is proven, it may qualify under Section 66D of the IT Act.
Q16. How can collective consumer cases be filed?
A. Through Consumer Court as a joint petition by affected individuals, guided by a legal representative.
Q17. How does Choice4Voice.com assist victims?
A. By publishing verified cases, providing complaint templates, and guiding users through escalation channels.
Q18. What refund timeframe can users expect from Paytm?
A. Typically within 30 days once officially acknowledged.
Q19. What preventive steps can investors take?
A. Always cross-check live gold prices and redemption policies before investing in any app-based product.
Q20. What outcome is expected from this case?
A. Transparency reforms in digital gold platforms and possible compensation for affected users.
