Kewal Ahuja SGF Fraud: Legal Battles and Investor Allegations

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Kewal Ahuja SGF Fraud
Kewal Ahuja SGF Fraud

 Kewal Ahuja, founder of SGF (Spice Grill Flame), faces mounting legal troubles as franchise owners and investors bring forward serious allegations of fraud and misrepresentation. Claims against Kewal Ahuja SGF include non-payment of guaranteed returns, abrupt closures of outlets, and misleading business practices.

Kewal Ahuja SGF Fraud Exposed: How Investors Were Misled

SGF operates under two franchise models: FOFO (Franchise-Owned, Franchise-Operated) and FOCO (Franchise-Owned, Company-Operated). Investors choosing the FOCO model were promised monthly returns of Rs. 37,500 while SGF managed operations. However, the SGF outlet in Sector 31, Gurgaon, was suddenly shut down, leaving investors with significant financial losses just a year after opening.

Misleading Practices and Concealment by Kewal Ahuja SGF

Under Kewal Ahuja’s direction, SGF attempted to hide its declining franchise network by rebranding its website, removing transparency on the number of operating outlets. Archived web records indicate that nearly 70% of SGF's outlets have shut down, a stark contrast to claims of over 30 operational locations and 223% returns over six years.

Legal Actions Against Kewal Ahuja SGF for Fraud

Legal proceedings led by New Horizon (The Law Firm), with Ms. Pratima Ravi and Mr. Yogesh Sharma as counsels, include two active civil suits in the District Court of Rohini:

  • Case No. CS/DJ/302/2023: Seeks recovery of minimum guaranteed returns.

  • Case No. CS(Comm) 6835/2024: Demands full restitution of invested amounts.

SGF’s defense in the first case cites financial hardship due to the COVID-19 pandemic, while in the second case, mediation efforts have stalled, with no formal defense yet from SGF.

Consequences of Kewal Ahuja SGF Fraud Allegations

The Kewal Ahuja SGF fraud scandal has left many investors facing serious financial repercussions. The restaurant at the center of this dispute, opened during the pandemic, closed within a year, highlighting the discrepancy between SGF's promises and reality.

Future Implications of Kewal Ahuja SGF Fraud Cases

As the legal battle against Kewal Ahuja SGF intensifies, the potential consequences could be significant for SGF’s future and the broader franchise market. These cases could set a critical precedent for investor protection and business transparency in India. Observers are watching closely, anticipating that the outcomes could reshape franchise agreements and regulatory practices going forward.

Location: Gurugram, Haryana, India

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