How FraudFree Team Recovered ₹2.6 Lakhs After an Adviser Refused a Signed Refund Clause

Kavita (name changed) took services from one of the known SEBI registered investment adviser service in early 2025 after a lengthy sales call that emphasised flexibility.

The signed agreement included a clause allowing cancellation within ninety days for a fifty percent refund of unused fees.

She paid 4,73,000 for an annual package covering research calls and portfolio reviews. Within sixty days, the quality of the calls dropped sharply, with generic advice replacing the personalised sessions she had been promised.

Kavita invoked the exit clause in writing, requesting the refund she was contractually entitled to under the ninety day window. The adviser did not respond for three weeks, then denied the request without a clear explanation.

A written refund clause in a signed advisory agreement is enforceable. Refusing to honour it once a client exercises the right within the stated window is a straightforward breach of contract terms the adviser itself had drafted.

Kavita followed up four more times over the next month, each time receiving a vague response citing internal review without any resolution offered.

A refund clause is often included in advisory agreements to reassure a hesitant client during the sales process. Once the client signs and pays, that same clause is sometimes quietly ignored.

Kavita kept every follow-up message in a single folder, which later made it simple to show a consistent pattern of requests met with delay rather than a genuine review.

How Our Team Drafted & Documented a Formal Complaint

We began by isolating the exact clause language from the signed agreement, since the wording itself carried most of the weight in this file.

Step 1: Extracted the Refund Clause

We copied the exact ninety-day refund clause from the agreement and calculated that Kavita’s request fell well within the window.

Step 2: Compiled the Follow up Trail

We gathered all five of Kavita’s refund requests along with the adviser’s delayed and vague responses to each one.

Step 3: Framed the Breach of Contract

We argued that refusing a clause the adviser itself had written and signed is a direct breach, independent of any dispute over advice quality.

Step 4: Filed with the Agreement Highlighted

We filed SEBI SCORES complaint with the signed clause, since it left little room for the adviser to argue interpretation.

The adviser’s response tried to argue the ninety-day window had technically closed by the time a formal refund form was processed. We showed that Kavita’s written request fell inside the window regardless of internal processing delays on the adviser’s side.

The Settlement: Securing a ₹2,60,000 Refund

Facing a clearly written and dated request against a signed clause, the adviser agreed to settle. Kavita recovered 2,60,000 of her 4,73,000 claim, a 55 percent share.

The matter was resolved within thirteen weeks of the initial complaint.

Register with us if your advisory refund clause was ignored after a valid request. We will help in reviewing, drafting & documentation of case.

Conclusion

A refund clause exists to be honoured, not to sit unused in a signed agreement. A written promise is one of the strongest tools a client can hold.

Read your advisory agreement again if you are unsure what exit terms you signed up for. The clause that gets you out is often buried in the fine print.

If a signed clause is still being ignored after a formal complaint, escalation is the next step. Our team moves such files to SMART ODR when a firm stops responding.

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Report. Recover. Stay Fraud Free.

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Frequently Asked Questions

1. Is a written refund clause in an advisory agreement enforceable?

Yes. A signed clause is a contractual commitment, and refusing to honour it once conditions are met is a clear breach.

2. What if my refund request was verbal, not written?

Written requests carry more weight, but message records like email or chat history showing your request can serve a similar purpose.

3. Does the adviser's internal delay affect my eligibility?

No. If your request was made within the stated window, delays on the adviser's side should not count against you.

4. Why was the recovery 55% and not the full refund clause amount?

The clause itself specified a fifty percent refund of unused fees, and the final recovery reflected that agreed structure after the SCORES review.