Kewal Ahuja, director of SGF is one among them who misrepresented his business model to the franchisees, Franchising in India has witnessed a four-fold growth since 2013 and is estimated at USD 50.4 billion currently. During COVID, most of the corporate professional tried their hands on opening an own business specially food and beverage industry. Some businessmen create modus operandi to fraud innocent investors to dupe their money by selling their franchise.
SGF was incorporated dated January 29th, 2019, with the main objective of providing food services and their ancillary objective included the business activities related to this industry and having Liaison offices and services rendering. Kewal Ahuja SGF, director of the firm, misrepresented the business model to the franchisee and promised higher returns which turned out to be not true.
The fee collected by SGF, was not reported to regulators such as Income Tax Department and GST Council under regulatory filings. SGF is non-compliant in MCA filings as well. This report highlights the compliance irregularities and potential financial misappropriation of funds. The malicious intent of key management is a key factor of the report.
SGF has a track record of statutory non-compliance. The details are as follows:
SGF was formed in year 2019 and first auditor was appointed on February 25th, 2019, however till march 2019, there was no available record with MCA for financial and annual filing.
Second auditor was appointed in SGF on 31/12/2020 for the period from 1st April 2019 till march 31st 2024. There is again no available record with MCA for financial and annual filing. The first auditor resigned in just few months and second auditor was appointed in extra ordinary general meeting, which raise an alarm.
SGF has not filed annual returns and financial statements with MCA for last 2 years which is a mandatory exercise for every PVT. Ltd company in India. If there is a further non-compliance for third year, MCA may start the process of striking off Suo moto. SGF has not initiated any e forms to correct the non-compliance which highlights the intent to not follow the going concern.
SGF has filed no income tax returns for the last three years. If the company is collecting franchise fee, the company should be filing the profit and loss account with the income tax department even if the net profit is NIL. This highlights malicious intent.
SGF has applied for 3 GST numbers. Out of these 3 GST numbers, 2 are registered in Delhi and Haryana state and the status is INACTIVE. These GST numbers are cancelled by GST council Suo moto. However, the GST number of Mumbai is active and there is no return filed by company since September 2021. If SGF has inactive GST registration, what was the objective of collecting GST from franchisee? This indicates a malicious intent.
We recommend all investors to be aware about such fraud business models such a SGF owned by Kewal Ahuja. Kewal Ahuja is also serving as treasurer of BJYM Delhi Region and shows his interest to become politician. This also raises an alarm of making innocent investors victim to his political power.
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