SGF Franchise Owners Accuse Kewal Ahuja of Fraud

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Kewal Ahuja, founder of SGF (Spice Grill Flame), finds himself at the center of mounting legal disputes as franchise owners and investors accuse the company of fraud and misrepresentation.

SGF franchise owners allege financial misrepresentation by Kewal Ahuja.
SGF franchise owners allege financial misrepresentation by Kewal Ahuja.

The Allegations

SGF offers two franchise models:
  • FOFO (Franchise-Owned, Franchise-Operated)

  • FOCO (Franchise-Owned, Company-Operated)
Under the FOCO model, investors were promised a guaranteed monthly return of ₹37,500, with SGF managing outlet operations. However, an SGF outlet in Sector 31, Gurgaon, shut down abruptly within a year, leaving investors without the promised returns.
Declining Network and Rebranding

To mask its shrinking presence, SGF, led by Ahuja, has rebranded its website, removing details about its operating outlets. Archived records, however, indicate that approximately 70% of SGF outlets have ceased operations, contradicting the company’s claims of running over 30 locations. Promised returns of over 223% during its six years of operation are now under scrutiny.
Legal Action

The law firm New Horizon, represented by senior counsel Ms. Pratima Ravi and arguing counsel Mr. Yogesh Sharma, has filed two civil suits in the Rohini District Court:
  • Case No. CS/DJ/302/2023 – Seeks recovery of the guaranteed returns promised to investors.
  • Case No. CS(Comm) 6835/2024 – Demands full restitution of the invested amounts.
  • SGF’s Defense and Mediation Stalemate

SGF has cited financial difficulties caused by the COVID-19 pandemic as its defense in the first case. However, in the second case, mediation efforts have failed, and SGF has yet to present a formal response. Read More..

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