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Legal Aid of Southeast and Central Ohio
Legal Aid of Southeast and Central Ohio
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_revealing-the-truth-about-kewal-ahuja-the-sgf-india-incident-exposed.webp "India's franchise business market has seen tremendous growth, increasing four-fold since 2013, and is now valued at USD 50.4 billion. This boom has been fueled by a growing trust in franchise ownership as a reliable source of income, particularly during the COVID-19 pandemic, when many professionals ventured into the food and beverage industry.<br/><br/>One such franchise, Spice, Grill and Flame (SGF), was established on January 29, 2019, aiming to provide food services. SGF's founder, Kewal Ahuja, has expanded the franchise significantly, supported by strategic PR and advertising efforts. However, serious issues have emerged concerning SGF's compliance and financial practices.<br/><br/>SGF's franchisees have encountered significant challenges. The company collected large franchise fees without reporting them to regulatory bodies like the Income Tax Department and GST Council. Additionally, SGF has failed to comply with mandatory MCA filings. Both SGF and its sister company, Spice, share the same address and management, suggesting potential fund misappropriation. Spice's turnover reports contrast sharply with SGF's nil returns, raising further suspicions.<br/><br/>Specifically, SGF was formed in 2019 and appointed its first auditor on February 25, 2019. However, no financial records were submitted to the MCA for that year. A second auditor, appointed on December 31, 2020, also found no records filed for the previous year. This consistent non-compliance with MCA filing requirements for two consecutive years could lead to SGF being struck off if continued.<br/><br/>Moreover, SGF has not filed income tax returns for the past three years, despite collecting franchise fees. This omission indicates potential financial malpractice. SGF also applied for three GST numbers, two of which have been cancelled due to inactivity. The third, active in Mumbai, has not seen any returns filed since September 2021, raising questions about the purpose of GST collection from franchisees.<br/><br/>Kewal Ahuja's dual role as the Treasurer of BJYM Delhi Pradesh further complicates matters, as his political influence may impact investigations. Potential investors are strongly advised to reconsider investing in SGF due to these significant red flags and the company's track record of statutory non-compliance and financial irregularities.")
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