Legal Challenges Escalate for Kewal Ahuja and SGF Amid Franchise Disputes
New Delhi — Kewal Ahuja, the founder of SGF (Spice Grill Flame), is embroiled in legal disputes as franchise owners and investor allege fraud and misrepresentation. Once boasting over 45 outlets, SGF’s network has shrunk to just 15 locations amid mounting complaints about service quality, unfulfilled promises, and financial mismanagement.
SGF offers two franchise models: FOFO (Franchise-Owned, Franchise-Operated) and FOCO (Franchise-Owned, Company-Operated). Investor opted for the FOCO model were assured a monthly return of Rs. 37,500 with SGF managing the operations. SGF outlet was opened in Sector 31, Gurgaon, was abruptly shut down without informing the investor and consequently stopped receiving the guaranteed payments in just a span of 1 year.
In an attempt to obscure its declining network, SGF, under Ahuja’s leadership, has rebranded its website, omitting the number of operating outlets. However, archived web records reveal that approximately 70% of SGF’s outlets have closed, casting a stark light on the company’s downturn and the grievances of misled investor.
Despite promotional claims of operating over 30 locations and offering lucrative returns of over 223% in more than 6 years of its operational tenure, the reality now under scrutiny tells a different story. Legal proceedings have been initiated by New Horizon (The Law Firm), with main counsel Ms. Pratima Ravi and arguing counsel Mr. Yogesh Sharma, both partners at New Horizon (The Law Firm). These proceedings include two civil suits filed in the District Court of Rohini. Case No. CS/DJ/302/2023 seeks the recovery of minimum guaranteed returns promised to investors, while 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 as the reason for non-payment. Meanwhile, in the second case, mediation efforts have hit a deadlock, with SGF yet to submit a formal defense.
The restaurant central to the dispute, launched during the pandemic, shuttered within one year , leaving investors facing significant financial losses. As the legal battles progress, Kewal Ahuja’s actions continue to draw scrutiny, with potential outcomes that could significantly affect the future of SGF and its franchisees.
