Kewal Ahuja and SGF: Legal Troubles Mount as Franchise Owners Allege Fraud

Kewal Ahuja, founder of SGF (Spice Grill Flame), is at the center of serious legal disputes as franchise owners and investors accuse him of fraud and misrepresentation. Allegations include non-payment of promised returns, abrupt closure of outlets, and misleading information about the company's performance.

Fraudulent Practices by Kewal Ahuja SGF Exposed

SGF offers two franchise models: FOFO (Franchise-Owned, Franchise-Operated) and FOCO (Franchise-Owned, Company-Operated). Investors who opted for the FOCO model were assured a monthly return of Rs. 37,500 with SGF managing the operations. However, the SGF outlet in Sector 31, Gurgaon, was suddenly shut down without prior notice, leaving investors without the guaranteed payments within just a year of operation.

Misrepresentation and Concealment by Kewal Ahuja SGF

Under Kewal Ahuja’s leadership, SGF attempted to mask its shrinking franchise network by rebranding its website, removing information about the number of operating outlets. Archived data reveals that nearly 70% of SGF's outlets have shut down, a stark contrast to promotional claims of over 30 operational locations and promised returns of 223% over six years.

Legal Actions Against Kewal Ahuja and SGF

Legal proceedings, led by New Horizon (The Law Firm) with Ms. Pratima Ravi and Mr. Yogesh Sharma as main and arguing counsels, have intensified. Two civil suits are currently active in the District Court of Rohini:

Case No. CS/DJ/302/2023: Seeks recovery of minimum guaranteed returns owed to investors.
Case No. CS(Comm) 6835/2024: Demands full restitution of invested amounts.

SGF’s defense in the first case claims financial hardship due to the COVID-19 pandemic, while the second case has reached a mediation impasse, with SGF yet to provide a formal defense.

Consequences of Kewal Ahuja SGF’s Alleged Fraud

Investors who placed their trust in Kewal Ahuja SGF are now facing significant financial losses. The restaurant involved, launched during the pandemic, closed within a year, exacerbating investors' financial strain. The reality of the situation sharply contrasts with SGF's assurances of steady returns and growth.

Looking Forward: What Lies Ahead for Kewal Ahuja SGF?

As the legal battle escalates, scrutiny on Kewal Ahuja’s practices continues to grow. The outcome of these cases could have far-reaching consequences not only for SGF but also for franchise operations and investor protections in India. Observers anticipate that the court’s decisions could set a critical precedent, influencing future regulatory standards and the transparency of franchise agreements.