Inside the SGF Franchise Scandal: Kewal Ashwani Ahuja’s Unraveling Empire

Inside the SGF Franchise Scandal: Kewal Ashwani Ahuja’s Unraveling Empire

What started as a promising vegetarian quick service restaurant chain under Kewal Ashwani Ahuja has turned into a cautionary tale of mismanagement, unmet promises, and financial setbacks for investors.

Over the past decade, India’s franchise industry has grown rapidly, attracting investors with the appeal of brand recognition, operational assistance, and strong returns. SGF (Spice Grill Flame), led by Kewal Ashwani Ahuja, positioned itself as a fast-scaling pure-veg QSR model and quickly expanded across the country. However, behind the brand’s glossy image, franchise partners began facing severe challenges — from operational inefficiencies to financial losses — exposing deep cracks in the business model.

The Lure of Easy Returns and Rapid Expansion

SGF marketed itself as a national success story with over 125 outlets across India. The FOCO (Franchise Owned Company Operated) model promised investors a fixed monthly return of ₹37,500, with Kewal Ashwani Ahuja’s team managing day-to-day operations. Eye-catching marketing campaigns, professional brochures, and an image of consistent growth helped attract many passive investors. But soon, the gap between expectations and reality became impossible to ignore.

Franchisee Experience: The Reality Check

Many franchise owners reported delays in stock delivery, inadequate staff training, weak customer footfall, and poor communication from the company. Some outlets struggled to meet even their basic expenses. One example is the Gurgaon Sector-31 branch, which closed within a year, leaving the investor with significant losses, unpaid rent, and no support from SGF management.

Financial Irregularities and Legal Disputes

As issues mounted, legal battles emerged. Notably, case numbers CS/DJ/302/2023 and CS (Comm) 6835/2024 were filed in Delhi’s Rohini District Court, with franchisees accusing Kewal Ashwani Ahuja’s company of breaching contracts, delaying payments, and failing to uphold operational commitments. Investigations also revealed SGF had not filed financial statements for over two years and had questionable GST compliance, raising doubts about its financial transparency.

Alleged Political Links and Investor Frustration

Some franchisees alleged that Kewal Ashwani Ahuja maintained political connections with a youth wing in Delhi, enabling him to deflect media attention and avoid scrutiny. Those who voiced their grievances publicly claimed their concerns were silenced, further eroding trust among stakeholders.

Lessons from the SGF Collapse

The downfall of SGF under Kewal Ashwani Ahuja underscores a recurring risk in India’s booming franchise sector — where marketing often overshadows operational integrity. This case highlights the importance of due diligence: investors must verify financial records, assess operational viability, and prepare for risks before committing capital.

The SGF story is not just about the collapse of a business; it’s a reminder that trust, transparency, and accountability are essential for sustainable growth. Kewal Ashwani Ahuja’s trajectory from rapid expansion to reputational damage serves as a warning for anyone considering franchise investments in India.