#GST fraud in Delhi

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Rogue Tax Officer, 3 Lawyers, 500 Firms - Big GST Heist Uncovered In Delhi

A rogue tax officer, a trio of lawyers and a few other people masterminded a fraud, swindling ₹ 54 crore from the Goods and Service Tax (GST) Department in the national capital. It was exposed by the Anti-Corruption Bureau of the Delhi Government.

A GST officer, three lawyers, two transporters and the owner of a "company" were part of a plot involving 500 fake companies and fake invoices worth ₹ 718 crore to claim GST refunds worth ₹ 54 crore. The 500 companies only existed on paper and were purportedly involved in the import/export of medical goods to claim GST refunds.

Babita Sharma, the GST Officer (GSTO), hatched a plan with 96 fake firms and approved over 400 refunds worth ₹ 35.51 crore between 2021 and 2022. In the first year, only refunds worth ₹ 7 lakh were approved but later the remaining were approved.

Interestingly, the refunds were approved by the GSTO after filing the applications and approval was given within three days. In 2021, Ms Sharma was transferred to Ward 22 of the GST office and surprisingly, within a few days, over 50 firms applied for migration from Ward 6 to Ward 22, and was okayed within a short period. The migration raised alarm bells and the GST Vigilance Department sent teams to the offices of these firms. It led to the unearthing of the GST fraud, which had roots in its own office.

A particular ward has jurisdiction over a specific area.

The fake firms generated invoices worth ₹ 718 crore, i.e. fake purchases were made and business was only on paper, the probe, which was later transferred to the ACB, found. The GSTO issued refunds without verification of invoices and Input Tax Credit (ITC).

Over 40 firms were supplying goods in the first phase but no records were available in the second phase, the probe found. In the case of 15 firms, there was neither an Aadhar Card verification nor physical verification of the firm at the time of GST registration, which as per the rules is mandatory.

Of the 53 firms that migrated to Ward 22 after Ms Babita's transfer, 48 were given a GST refund of ₹ 12.32 crore. The Non-Objection Certificates or NOCs from property owners of these firms for offices were prepared between July 26, 202 and July 27. The GSTO was transferred to Ward 22 on July 26, 2021.

The investigation revealed that the GST refunds were issued in the bank accounts of three lawyers - Rajat, Mukesh and Narendra Saini and their family members, through different bank accounts. The ACB found 1,000 bank accounts directly related to the fake firms, their family members and the employees.

The trio ran 23 firms from an email ID and mobile numbers. Five firms were registered under the same PAN number and email ID to generate different GST registration numbers.

The 23 firms handled by the lawyers generated fake invoices worth ₹ 173 crore. Out of these 23 fake companies, seven were involved in the supply of medical goods and had shown business of ₹ 30 crore in their invoices.

One of the accused arrested is a fake firm owner, Manoj Goyal and two transporters, Surjeet Singh and Lalit Kumar. The Anti-Corruption Bureau said forged e-way bills and receipts of carrying goods were generated to get GST refunds. The transporters received money for providing such documents without giving any service.

[scbhagat]

Tax Auditors in Delhi: Expert Services by SC Bhagat & Co.

Navigating the complexities of tax regulations is crucial for businesses and individuals alike, especially in a dynamic financial landscape like Delhi. Choosing a reliable tax auditor ensures your financial compliance, reduces audit risks, and enhances your financial credibility. SC Bhagat & Co., a leading tax auditing firm in Delhi, provides expert services designed to meet the unique needs of businesses and individuals, from tax compliance to advanced auditing solutions.

Why Tax Auditing Matters Tax auditing is essential for ensuring that financial records are accurate and compliant with current tax laws. Regular audits help businesses identify financial discrepancies, optimize their tax liabilities, and avoid costly penalties. For individuals, tax audits can validate their tax filings and enhance financial transparency. Whether you're a business owner or an individual taxpayer, tax audits play a vital role in:

Ensuring Compliance: By following regulatory requirements, tax audits help organizations and individuals avoid penalties. Detecting Errors and Fraud: An audit reveals inconsistencies in financial records, helping to prevent fraud or accidental errors. Improving Financial Accuracy: A professional audit provides a detailed review of financial data, ensuring accurate tax calculations. Building Credibility with Stakeholders: Regular audits reflect a commitment to transparency, boosting stakeholder confidence. SC Bhagat & Co.: Trusted Tax Auditors in Delhi SC Bhagat & Co. has earned its reputation as a trusted provider of tax auditing services in Delhi, thanks to its dedicated team of qualified professionals, extensive industry knowledge, and commitment to client success. Their expert tax auditors help clients stay compliant, reduce tax risks, and optimize their financial health through strategic auditing and consulting.

Key Services Offered by SC Bhagat & Co. SC Bhagat & Co. offers a range of tax auditing and related services designed to meet the unique needs of both individuals and businesses in Delhi:

Statutory Tax Audits SC Bhagat & Co. conducts thorough statutory tax audits to ensure clients meet legal requirements and minimize tax liabilities. Their expertise in Indian tax laws ensures every client is fully compliant with government regulations.

Internal Audits For businesses seeking to improve internal processes, SC Bhagat & Co. offers internal auditing services that identify areas of risk, improve financial accuracy, and enhance operational efficiency.

GST Audits GST compliance is critical for businesses in India, and SC Bhagat & Co. specializes in GST audits to ensure accurate filing and adherence to GST regulations. This minimizes the risk of penalties and provides peace of mind.

Income Tax Audits SC Bhagat & Co. offers comprehensive income tax audits for individuals and businesses, ensuring accurate filings and preventing potential issues with tax authorities.

Forensic Audits For clients requiring deeper analysis, SC Bhagat & Co. provides forensic audits to detect and address financial discrepancies, fraud, or irregularities within an organization.

Benefits of Working with SC Bhagat & Co. When you choose SC Bhagat & Co. as your tax auditor in Delhi, you gain access to a team that brings professionalism, in-depth knowledge, and dedication to every audit. Here are some reasons clients prefer SC Bhagat & Co.:

Industry Expertise: With years of experience in tax auditing and consulting, SC Bhagat & Co. provides services across various industries. Client-Centric Approach: The team at SC Bhagat & Co. takes time to understand each client's specific requirements, offering tailored solutions that best meet their needs. Timely and Efficient Services: Understanding the importance of meeting deadlines, SC Bhagat & Co. ensures timely audits and reporting. Confidentiality and Trust: They prioritize client confidentiality, ensuring all information is handled securely and professionally. Why Delhi Businesses and Individuals Choose SC Bhagat & Co. Delhi’s competitive business environment demands precision and reliability in tax matters. SC Bhagat & Co.’s commitment to excellence, coupled with their local expertise, makes them a preferred choice for tax audits in Delhi. Their clients range from small businesses to large corporations, as well as individuals seeking precise and trustworthy tax audit solutions.

Testimonials from Satisfied Clients Many of SC Bhagat & Co.'s clients have shared positive experiences, appreciating their professionalism and thorough approach. Here are a few testimonials:

“SC Bhagat & Co. has transformed our financial process. Their tax auditors identified several areas where we could reduce tax liabilities, helping us save significantly.”

“We’ve been working with SC Bhagat & Co. for years, and their expertise in GST audits has been invaluable. Highly recommended for any business in Delhi!”

Contact SC Bhagat & Co. for Expert Tax Auditing in Delhi If you're in need of reliable and professional tax auditing services in Delhi, SC Bhagat & Co. is here to help. Their team is ready to assist you with all your tax auditing needs, ensuring you meet compliance requirements and optimize your financial standing.

[kewalahujasgffraud]

Kewal Ahuja's SGF India Franchise Scam Dupes Many: From Youth to Seasoned Professionals

SGF’s Kewal Ahuja is a franchisee owner who has grown up well in this franchising segment of business, especially during the covid times. He has become an owner of franchisee from few to many, from nowhere to everywhere. Paid PR and advertisement clean his image on media and social media. SGF India is reported to be a leading restaurant food chain with many branches across the country. This is the same reason why innocent people fell for the potential fraud conducted by Kewal Ahuja SGF Fraud.

The story behind the curtain, SGF owner Kewal Ahuja SGF has played so smartly and wittily here. He presented this business to the people in such a way that it had looked so tempting & lucrative business with high return value in minimum frame of time. High returns & more than a sustainable revenue generation were offered by SGF -Kewal Ahuja in his 2 modules of business FOFO & FOCO. The investors, especially people who were being told to leave their job or lost their jobs during the pandemic, were in need of finding an option to generate income joined hands with SGF franchise.

Large sum was collected as franchise fee by Spice grill flame and this amount 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. The latest reports suggest that compliance irregularities and siphoning of funds from SGF India follows these which throws light to the potential financial fraud conducted by Kewal Ahuja SGF.

Kewal Ahuja SGF uses his influence to cover up these facts and represents his business in the society as a genuine firm. Kewal Ahuja also has a strong political background. His family is into politics and Mr. Ahuja is currently the treasurer of the BJYM Delhi state unit. He uses his political influence to his favour for putting the complaints away from the eyes of the public. He holds himself as a well-established entrepreneur who is genuine and works for the welfare of the public as well. But the truth is that he runs the food business not to serve the public, but to improve his political image.

[dynastyvisuals-17]

Exposing the Truth: Kewal Ahuja and the SGF India Franchise Fraud

Kewal Ahuja SGF, has been exposed as the mastermind behind one of India’s largest franchise scams. SGF India, initially marketed as a successful food chain, attracted investors with promises of high returns and minimal risk, particularly during the COVID-19 pandemic. However, the reality was far different. Here are the key details of the scam:

Promising Business Models: Ahuja marketed SGF India under two franchise models—FOFO (Franchisee Owned, Franchisee Operated) and FOCO (Franchisee Owned, Company Operated)—offering high returns and quick profits.

False Promises of Financial Stability: SGF India was portrayed as a thriving restaurant chain, attracting numerous investors, including those seeking income after losing jobs during the pandemic. The promises of steady returns lured many into the Kewal Ahuja SGF franchise.

Financial Irregularities: Large franchise fees were collected, but not reported to regulatory bodies such as the Income Tax Department and GST Council. SGF India was also found non-compliant with MCA filings, raising questions about its financial transparency.

Fund Siphoning Allegations: Investigations suggest that funds were siphoned off, pointing to significant financial fraud within the Kewal Ahuja SGF operation.

Political Influence: Kewal Ahuja, leveraging his connections within the BJP and his position as treasurer of BJYM Delhi, used his political influence to protect SGF India from scrutiny, effectively suppressing public complaints and avoiding accountability for the franchise's financial misconduct.

Personal Gains Over Public Welfare: Despite presenting himself as a community-serving entrepreneur, Ahuja’s true intentions were to further his political ambitions and increase his personal wealth through the SGF India franchise.

Conclusion:

The SGF India franchise scandal is a powerful reminder of the dangers posed by unregulated franchising and the risks associated with political influence in business. It underscores the urgent need for stronger oversight, transparency, and regulatory measures within India’s growing franchise sector to prevent similar fraudulent schemes from affecting future investors.

[finverto]

Highlights of the 53rd GST Council Meeting: Key Updates and Outcomes

Highlights of the 53rd GST Council Meeting: Key Updates and Outcomes. The 53rd GST Council meeting, held on June 22, 2024, in New Delhi, marked the first meeting after the 2024 Lok Sabha elections. Chaired by the newly appointed Union Finance Minister, Nirmala Sitharaman, the meeting addressed several critical issues to streamline GST compliance and enhance the tax structure. This blog provides a comprehensive overview of the meeting’s highlights, updates, outcomes, and the latest news. GST Registration.

Key Decisions and Updates from the 53rd GST Council Meeting

Ease of Compliance Burden for Taxpayers

1. Changes in GSTR-1 Filing:

Introduction of GSTR-1A: Taxpayers can now add or amend particulars in GSTR-1 of the current tax period/IFF for the 1st and 2nd month of the quarter before filing GSTR-3B.

Reporting B2C Supplies: The threshold for reporting Business-to-Consumer (B2C) interstate supplies invoice-wise in Table 5 of GSTR-1 has been reduced from ₹2.5 lakh to ₹1 lakh.

2. GSTR-4 Due Date Revised:

The due date for filing GSTR-4 by composition taxable persons has been extended from April 30 to June 30, starting from the fiscal year 2024-25.

3. TCS Rate Reduction:

The Tax Collected at Source (TCS) rate for Electronic Commerce Operators (ECOs) has been reduced from 1% to 0.5% (0.25% each under CGST and SGST/UTGST or 0.5% under IGST).

4. Compulsory Filing of GSTR-7:

GSTR-7 must be filed mandatorily even if no Tax Deducted at Source (TDS) is deducted. No late fee will be charged for nil filing. GST Filing.

5. GSTR-9/9A Filing Exemption:

Taxpayers with an aggregate annual turnover up to ₹2 crore will be exempt from filing the annual return in GSTR-9/9A for the fiscal year 2023-24.

Modifications to Sections and Rules

1. Modification to Section 16(4):

The time limit to avail Input Tax Credit (ITC) for invoices or debit notes in any GSTR-3B filed up to November 30, 2021, is deemed to be November 30, 2021. This applies retrospectively from July 1, 2017. Section 16(4) shall be relaxed for returns filed within 30 days of the order of revocation.

2. Amendment to CGST Rule 88B:

No interest will be charged on the amount available in the electronic cash ledger on the due date of filing GSTR-3B, debited while filing the return in cases of delayed filing.

3. New Section 128A:

Waives interest and penalties for demand notices issued under Section 73 of CGST for fiscal years 2017-18, 2018-19, and 2019-20 in cases not involving fraud, suppression, and misstatement. This applies if the taxpayer pays the full amount in the notice by March 31, 2025.

4. Changes in Sections 73 and 74:

A common time limit will be set for issuing demand notices and orders. The time limit for taxpayers to claim the benefit of reduced penalty, by paying the tax demanded along with interest, is increased from 30 to 60 days.

https://www.finvertoassociates.com/wp-content/uploads/2024/07/Designer-5.jpeg

Monetary Limits and Appeals

1. Monetary Limits for GST Appeals:

Recommended monetary limits for filing appeals: ₹20 lakh for GST Appellate Tribunal, ₹1 crore for High Court, and ₹2 crore for Supreme Court.

2. Amending Sections 107 and 112:

The maximum amount for pre-deposit for filing an appeal before appellate authorities is reduced from ₹25 crore to ₹20 crore under both CGST and SGST. For appeals before the GST Appellate Tribunal, the pre-deposit is reduced from 20% with a maximum amount of ₹50 crores to 10% with a maximum of ₹20 crores under both CGST and SGST.

Additional Key Decisions

1. Sunset Clause for Anti-Profiteering Cases:

A sunset clause will be added for pending anti-profiteering cases. The hearing panel will shift from CCI to the principal bench of GSTAT. The sunset date for receiving new applications regarding anti-profiteering is set for April 1, 2025.

2. Time Limit for GSTAT Appeals:

Modifying Section 112 to provide a 3-month time frame for filing appeals before the GST Appellate Tribunal. The timeline will commence from a date yet to be notified, likely by August 5, 2024.

3. New Section 11A:

Allows regularization of non-levy or short levy of GST due to common trade practices.

4. IGST Refunds and Adjustments:

Mechanism introduced for claiming refunds of additional IGST paid due to upward price revisions after exports. No IGST refund will be allowed where export duty is payable.

5. Biometric-based Aadhaar Authentication:

Implementation of biometric-based Aadhaar authentication for GST registration will be rolled out nationwide in a phased manner.

6. DRC-03 Circular:

A circular will prescribe a mechanism for adjusting any demand amount paid through DRC-03 against the amount payable as a pre-deposit for filing a GST appeal.

7. Amendment to Section 122(1B):

Clarification that the penal provision is applicable only for those e-commerce operators required to collect TCS under Section 52 and not for other e-commerce operators.

The 53rd GST Council meeting has brought significant changes aimed at simplifying compliance, reducing the tax burden, and enhancing the efficiency of the GST system. These updates reflect the government’s ongoing efforts to create a more robust and taxpayer-friendly GST framework. Keep an eye on official announcements for further details and implementation guidelines.

Stay tuned for the latest updates and insights on GST and other financial regulations.

[cybercrime-blogs]

Chinese-Linked Scam Busted: Mastermind of Rs 21 Crore Online Job Scam Arrested By Uttarakhand STF

Dehradun's Special Task Force (STF) of the Uttarakhand Police has successfully apprehended the alleged mastermind behind a massive ₹21 crore fraud scheme that targeted unsuspecting individuals with the lure of a work-from-home opportunity. The accused, identified as Rushabh Sharma from Haryana, was captured following an extensive and meticulous investigation. It is believed that Sharma was the architect of this elaborate fraudulent operation, which had connections to Chinese interests.

Also Read: Cybercrime in Nagpur - Cyber Blackmailer Couple Arrested in Pune for Extorting Money

The case first came to light when a complaint was filed at the Cyber Crime Police Station in Dehradun. The victim, in search of an online job, received an enticing WhatsApp message from an unfamiliar number. This message promised a work-from-home opportunity associated with the renowned Marriott Bonvoy Hotel. The victim was then contacted through the Telegram app by an individual named Sonia, who claimed to represent the esteemed hotel group.

Sonia baited the victim with a scheme that initially involved earning commissions by booking hotels online. To initiate the victim's involvement, a website bearing the URL "https://www.marriottwork.com" was employed for registration, and a Telegram group was established using the link "https://t.me/+CSYSadhAdYk2NDII." Subsequently, the victim was assigned various financial transactions, ultimately leading to a significant loss of ₹19,94,853.

Legal Action and Thorough Investigation

In response to this fraudulent activity, a case was swiftly registered under Section 420/120B of the Indian Penal Code and the Information Technology Act at the Cyber Crime Police Station in Dehradun. An extensive technical investigation was initiated, which eventually led the authorities to the suspect's location in Haryana. A team was promptly dispatched to the neighboring state to further probe the matter, and after rigorous efforts, they succeeded in apprehending Rushabh Sharma, a 27-year-old resident of Gurgaon, Haryana. Additionally, Sharma's Realme mobile phone, alleged to have been used in the commission of the crimes, was seized by the police.

Also Read: Kashmiri Brother-in-Law could not show Kamal, and pressure on Nagpur police failed

Uncovering an Expansive Network

Throughout the investigation, the authorities unveiled a convoluted network of fraudulent bank accounts linked to the accused. These accounts were tied to over 85 complaints registered on the national portal, amounting to a staggering ₹21 crore. They were scattered across various locations, including Gujarat, Delhi NCR, and Punjab. Notably, the accused had also set up dummy bank accounts targeted at Chinese customers.

The perpetrators employed various tactics, including generating fake GST and import-export registration numbers, before establishing these bank accounts. These accounts were predominantly "CURRENT Accounts" created using PAN cards, with Aadhaar cards used for SMS alerts. Subsequently, they provided net banking credentials to foreign customers, enabling them to make cryptocurrency purchases and effectively erase any traces of the money trail. To evade scrutiny, accounts were established under the guise of agricultural firms and societies.

Also Read: Pune Couple's Organized Cyber Blackmailing Scandal Uncovered

This significant arrest by the Uttarakhand Police's Special Task Force represents a substantial victory in the battle against online fraud and cybercrime. It serves as a stark reminder for individuals to exercise caution when encountering seemingly lucrative work-from-home opportunities, particularly those that appear too good to be true.

A recent investigation has brought to light the extensive criminal activities of Rushabh Sharma, a notorious figure with a criminal record spanning multiple states and union territories in India. Shockingly, Sharma has faced a staggering 37 charges registered across 855 cases in various regions, including Telangana, Delhi, Uttar Pradesh, Chhattisgarh, Uttarakhand, Maharashtra, Haryana, and Karnataka, among others.

To further complicate matters, the accused had meticulously established a network of 855 criminal Telegram links that spanned across several states, with a notably high concentration in Uttar Pradesh, Rajasthan, Maharashtra, Delhi, Telangana, and Bihar.

Also Read: Cyber blackmailing case: Shatrughan's bail plea rejected

The evidence and information gathered during this investigation will be promptly shared with the relevant states and union territories, enabling them to take appropriate actions as necessary.

The individual at the center of this criminal web is Rushabh Sharma, the son of Rajesh Sharma, and a resident of M.No. 735, Sector 9, Gurgaon, Haryana. At 27 years of age, his arrest represents a significant setback for the orchestrators of this elaborate fraud scheme. This case serves as a stark reminder of the vital role that vigilance and reporting of suspicious activities play in preventing further individuals from becoming victims of such scams.

Source: https://www.the420.in/haryana-resident-kingpin-work-from-home-fraud-uttarakhand-stf/ 

[filmishine]

MS Dhoni, Abhishek Bachchan's PAN Details Used For Fraud, 5 Arrested: Cops

Investigation into the case is underway. New Delhi: In a bizarre case of cyber fraud, a group of fraudsters allegedly procured PAN details of several Bollywood actors and cricketers from their GST Identification Numbers which are available online, and got credit cards issued in their names from Pune-based fintech startup ‘One Card’. Some of the celebrities whose names and details were used by…

[creative-pens]

Food Chain Franchising In India: The Kewal Ahuja SGF Fraud; Truth Reveals

Kewal Ahuja SGF India fraud breaks cover as more investors come to the limelight alleging SGF with cheating money in the name of franchising. Food franchises enjoy a large amount of popularity, which translates into financial success for the owners of these businesses. On the other hand, picking the incorrect one will cost you both time and money. It is crucial to pick the most trustworthy food franchise in which you can put your faith to enable you to succeed. You ought to earn a satisfactory reward for all of your hard work.

The franchising business is growing at a healthy 30-35% per year and is expected to reach $ 100 Billion in 2024. Many corporate professionals as well as an innocent salaried middle-class youth have been interestingly seen taking a plunge into this franchisee business. This is the same reason why many people joined as franchisees of SGF India. SGF owner Kewal Ahuja has played so smartly and wittily here. He presented this business to the people in such a way that it had looked so tempting & lucrative business with high return value in minimum frame of time. High returns & more than a sustainable revenue generation were offered by SGF made people fall for its franchise.

Abruptly high money as fee was charged from the people. Moreover, 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 fraud. A deep analysis has been done of SGF and its sister concern company Spice to highlight facts that both are managed by Kewal Ahuja and the companies are also registered at the same address. The sister concern- spice's reported turnover for last 3 years is as follows.

Y & Y (INR)

2017-18: 1.26 crore

2018-19: 2.54 crore

2019-20: 2.70 crore

SGF in the previous 3 years have reported NIL returns in GST and Income tax. They are also non-compliant in MCA filings as well. This is a potential angle of fund misappropriation.

The track record of SGF’s statutory non-compliance 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 mandator 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 no follow the going concern.

SGF has filed no returns the 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 may highlight 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. GST number of Mumbai is active however, there is no return filed by company since September 2021.

All these factors show the malicious intent of Kewal Ahuja and SGF. More truths on Kewal Ahuja SGF fraud comes to the limelight as more and more investors share news about being cheated. All those interested investors should be cautious and rather try to refrain themselves from investing in SGF owned by Kewal Ahuja, where fund misappropriation and fraud has been kept as a main criterion of the business. Kewal Ahuja also serves as the Treasurer of BJYM Delhi Pradesh and has high political influence. He uses this to suppress the news of the fraud. His ultimate aim is to become a lead politician and not be a good businessman.

[baitdragon]

Frauds Drastically Increase In India - Kewal Ahuja SGF Fraud, the Latest Fraud in Food Franchising Breaks Cover

Pandemic was a time when we saw all kinds of new business plans rising up in the market like mushrooms in rain. During the pandemic period, majority of the people were asked to leave jobs or work from home. The people who were being told to leave their job or lost their jobs during this pandemic, were in need of finding an option to get their livelihood generated by some or the other means of business.

This was the time when franchise business also gained momentum in India. The Indian economy is growing at the fastest rate, and its middle class is growing at the fastest rate. The food industry in India is expanding, and analysts project that it will expand at a growth rate of 10%. The franchising business is growing at a healthy 30–35% per year and is expected to reach $ 100 Billion in 2024. Food franchises in India are also the new talk of town.

Every business field have some hidden traps here and there in them. Fraud in food franchising is also one such trap that have drastically increased in India. Kewal Ahuja’s Spice, Grill, Flame is one such restaurant chain that have deceived many innocent people in the name of franchising.

Food franchises enjoy a large amount of popularity, which translates into financial success for the owners of these businesses. On the other hand, picking the incorrect one will cost you both time and money. The story behind the curtain, SGF owner Kewal Ahuja has played so smartly and wittily here. He presented this business to the people in such a way that it had looked so tempting & lucrative business with high return value in minimum frame of time. High returns & more than a sustainable revenue generation were offered by SGF -Kewal Ahuja in his 2 modules of business FOFO & FOCO.

The high amount of money that was charged as fee from the people 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. A deep analysis has been done of SGF and its sister concern company highlights the fact that both SGF and spice are registered at same address and Kewal Ahuja is the management personnel for both the companies. It is also evident from the reports that SGF India had filed zero returns in the previous financial years.

More details reveal about the Kewal Ahuja SGF fraud reveals that the issue ranges from tax irregularities to illegal fund siphoning and misappropriation. Kewal Ahuja, other than being the personnel of this company is the BJYM Delhi Pradesh treasurer. He also uses his political influence in covering issues related to the fund siphoning.

[astrosblogs]

Kewal Ahuja SGF Fraud Uncovers Into The Limelight

Kewal Ahuja’s vegetarian restaurant chain, SGF India alleged to provide deceptive franchise model. Kewal Ahuja made use of people’s need for job and money during the pandemic period and deceived them money worth lakhs.

The franchising business is growing at a healthy 30–35% per year and is expected to reach $ 100 Billion in 2024. Delhi NCR*s bustling markets greets you with the choicest of top brands. Many corporate professionals as well as an innocent salaried middle-class youth have been interestingly seen taking a plunge into this franchisee business. Kewal Ahuja exploited this opportunity to gain faith of the people, especially youngsters and got them in the trap.

The people who were being told to leave their job or lost their jobs during this pandemic, were in need of finding an option to get their livelihood generated by some or the other means of business. High returns & more than a sustainable revenue generation were offered by SGF — Kewal Ahuja in his 2 modules of business FOFO & FOCO.

Huge amount of money that was collected from the franchisees where not reported by SGF to the regulatory authorities like the Tax department and GST Council. They are also non-compliant in MCA filings as well. This report is proof for the compliance irregularities and potential financial fraud conducted by SGF.

SGF has not filed annual returns and financial statements with MCA for last 2 years which is a mandator 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.

These reports bring forth the Kewal Ahuja SGF fraud. So investors make sure that you don’t fall to trap in such companies.

[argus-news]

Scam In Indian Franchising Business – Kewal Ahuja’s SGF India Among The Top Fraud Companies

Franchising has been the modern business trend in India in the latest years especially among the youngsters. When picking the franchising company, take care to choose the trustworthy ones, because just like the increase in franchising business, the scams are also increasing in franchising.

One of the leading news among this line is the franchise fraud by Kewal Ahuja’s SGF (Spice, Grill and Flame). Latest reports shows that the vegetarian restaurant food chain owned by the BJYM Treasurer of Delhi Pradesh, Kewal Ahuja is alleged to have cheated many people in the name of franchising. He has collected money from many people and is said to have closed down the outlets after a short period. The franchisees complain that he is not willing to give back their money.

The people who were being told to leave their job or lost their jobs during this pandemic, were in need of finding an option to get their livelihood generated by some or the other means of business. This was wittily used by Kewal Ahuja. He is one among those franchisee owners who has grown up well in this segment of business. He has become an owner of franchisee from few to many, from nowhere to everywhere.

Y & Y (INR)

2017–18–1.26 crore

2018–19–2.54 crore

2019–20- 2.70 crore

Kewal Ahuja’s SGF is non-complaint in GST and MCA filings as well. SGF in all these 3 years have reported NIL returns in GST and Income tax. However, the sister concern’s reported top line is mentioned above. This is a potential angle of fund misappropriation.

[kewelsgffraud]

Kewal Ahuja SGF Accused of Fraud in India Franchise Scheme

Kewal Ahuja's SGF India has experienced a significant growth in the franchise industry in India over the past decade. However, it is important to note that this growth was not necessarily achieved through ethical means. Reports have surfaced alleging financial fraud on the part of SGF India and Kewal Ahuja. Despite the success of the franchise, it is crucial that the business practices of SGF India are thoroughly examined and any wrongdoing is appropriately addressed. It is important for the franchise industry in India to maintain a level of integrity and transparency in order to continue its growth and success.

Kewal Ahuja SGF Fraud, director of SGF claims in an interview that his business has expanded over covid. According to him, his business is expanding and during the pandemic, it slowly gained pace at expanding and starting more outlets. But the truth is far from this. Kewal Ahuja SGF hides the fact that many of the SGF outlets were closed down without any prior notice. Some brands are trustworthy, but few businessmen create modus operandi to fraud innocent investors to dupe their money by selliFng their franchise. SGF (Spice grill flame) proved to be one among them. Kewal Ahuja, director of SGF, misrepresented his business model to the franchisees and promised higher returns which turned out to be not true.

Kewal Ahuja is also the director with SRVR Projects Private Limited. Kewal Ahuja SGF is known amongst the public as the man behind Spice Grill Flame. He run his restaurant business SGF with outlets in many regions. This restaurant chain was incorporated in January 29th, 2019, with the claim that their objective is to provide food services to the society. But all of this was Kewal Ahuja’s way to create a screen in front of the public to conduct the potential financial fraud. The alleged fraud is also backed by the fact that, the fee collected by SGF from the franchisees, were not reported to regulators such as Income Tax Department and GST Council under regulatory filings. Kewal Ahuja SGF is also the BJYM Delhi Unit Treasurer and uses his political influence to cover up his fraud and create a good image in front of the public.

[legalupanishad]

Bharatpe files a Rs. 88 crore lawsuit against Ashneer Grover

This article on “Bharatpe files a Rs. 88 crore lawsuits against Ashneer Grover: Facts and Laws” was written by Swaroopa Royadu, an intern at Legal Upanishad.

Introduction

The ex-managing director and co-founder of BharatPe, Ashneer Grover's wife Madhuri Jain, and other family members are being sued for up to Rs 88 crore in damages. The business claims that the Grover family fabricated invoices, hired phoney vendors to provide services for the business, and overcharged the business for them.

Facts of the case:

Bharatpe company was incorporated in March 2018. The company is famous for developing a single QR code for all types of payment and making such payments interoperable. - Ashneer Grover was the Managing Director and co-founder of Bharatpe. His wife Madhuri Jain Grover was working as Head of Controls at Bharatpe. - It is alleged that the company was under the complete supervision of Ashneer Groover and his family from 2018- January 2022. It was during this period funds were misappropriated by them. - At the beginning of the year 2022(January), an audio clip of Ashneer Grover was leaked which involved using of inappropriate language and threats to Kotak Group employees who failed to allot funds for Ashneer to buy the IPO of Nykaa Company. - Ashneer Grover took voluntary leave after this phone conversation. - Kotak Mahindra Bank was pursuing legal action against Ashneer Grover for using inappropriate language against its employee. - To review and determine whether Ashneer committed the offense of misconduct, the company’s Board appointed Shadul Amarchand Mangaldas, Alvarez, and Marsal as well as PwC to conduct corporate governance. - Madhuri Jain Grover was fired from the company for misappropriating funds and Ashneer Grover resigns from Company in March/2022 - The company has filed a criminal case with the Economic Offences Wing (EWO) in New Delhi on 17 counts which include criminal breach of trust, forgery, embezzlement, destroying of the evidence, etc. -  A civil suit is filed before the High Court of Delhi for recovery of damages of Rs 88 crore in the month of December/2022 - The Delhi High court issued notice to Ashneer Grover and his family and asked them to reply within 2 weeks. The summons has been issued to the family members.   The Company is demanding Rs. 88 crore from Ashneer and his family members for the misappropriation of company funds. Ashneer Grover’s wife Madhuri Jain Grover has raised fake invoices of non-existing vendors and overcharged the Company for recruitment by forwarding such invoices to the accounts department. This was supported by her brother and other family members. How the Company has arrived at damages of Rs 88 crore: - Against fake invoices of non-existing vendors                       -Rs. 71.7 crore - Claim for penalty paid for GST authorities                - Rs. 1.66 crore - Payment to vendors providing recruitment service    - Rs. 7.6 crore - Payment for damaging the reputation                                   - Rs. 5 crore The company has also asked the court to pass a permanent injunction restraining Ashneer Grover and his family members from making defamatory statements and derogatory statements concerning every member of the company and restrain them from publishing or printing them on any social media or another place. The company has also asked Ashneer and his family members to disclose their assets.

Laws:

- Misappropriation of funds: “ Without prejudice to any liability including repayment of any debt under this Act or any other law for the time being in force, any person who is found to be guilty of fraud involving an amount of at least 10 lakh rupees or 1%of the turnover of the company, whichever is lower, shall be punishable with imprisonment for a term which shall not be less than six months but which may extend to ten years and shall also be liable to fine which shall not be less than the amount involved in the fraud, but which may extend to three times the amount involved in the fraud” The term fraud for the purpose includes “affairs of a company or anybody corporate, includes any act, omission, concealment of any fact or abuse of position committed by any person or any other person with the connivance in any manner, with intent to deceive, to gain undue advantage from, or to injure the interests of, the company or its shareholders or its creditors or any other person, whether or not there is any wrongful gain or wrongful loss. - Defamation: . Whoever defames another shall be punished with simple imprisonment for a term which may extend to two years, with a fine, or with both. - Criminal breach of trust: criminal breach of trust shall be punished with imprisonment of either description for a term which may extend to three years, with a fine, or with both. - Forgery . Whoever commits forgery shall be punished with imprisonment of either description for a term which may extend to two years, with a fine, or with both. - Destruction of Evidence: :  penalty of the amount involved in the fraud or 3 times the amount of fraud/ imprisonment of minimum 6 months to maximum 10 years.

Probable defense Ashneer Gover  and his family members can take:

- Lack of intention behind the misappropriation of the company’s funds. It was done for Companies benefit and not for personal gain. - Ashneer and his family members had reasonable and good faith to believe that they are the rightful owner of the funds of the company. - The acts were done with the due permission of other members or directors of the company. - All the allegations are wrong and this could be proved with all the necessary documents and evidence. - There was a force or use of violence or threat used to perform the act of fund misappropriation. - The evidence provided by the opposition is insufficient to prove that the funds were misappropriated by Ashneer and his family. - By providing sufficient evidence to prove the sentences made against the company on social media are true and not defamatory.

REFERENCE:

- "BharatPe files criminal suit against Ashneer Grover, family:, Times of India, 8 December 2022, available at: https://timesofindia.indiatimes.com/business/india-business/bharatpe-files-criminal-suit-against-ashneer-grover-family/articleshow/96086592.cms - "BharatPe sues former MD Ashneer Grover for fraud", LiveMint, 9 December 2022, available at: https://www.livemint.com/companies/news/bharatpe-sues-former-md-ashneer-grover-for-fraud-11670523800678.html - "BharatPe drags Ashneer Grover to arbitration; Snapdeal halts $152 million IPO", Economic Times, 9 December 2022, available at: https://economictimes.indiatimes.com/tech/newsletters/tech-top-5/bharatpe-drags-ashneer-grover-to-arbitration-snapdeal-halts-152-million-ipo/articleshow/96114170.cms?from=mdr Read the full article

[cybercrime-blogs]

Cyber ​​Fraud: Fraudsters sitting in Dubai cheated Rs 2.54 crore, three fraudsters arrested

Noida Cyber Crime Police have cracked down on a gang involved in a massive investment fraud scheme through an online trading company. The gang successfully swindled crores of rupees from unsuspecting victims, including a retired Director General of CPWD who lost a staggering Rs 2.54 crore in a Forex trading scam. Three members of this international fraud syndicate have been apprehended by the police: Tarun Kashyap, Vijay Sharma from Paschim Vihar, Delhi, and Hemant Singhaniyan from Punjabi Bagh. Authorities are currently conducting a search for other members involved. During the operation, police recovered two mobile phones and 11 SIM cards from the arrested individuals.Also Read: Kashmiri Brother-in-Law could not show Kamal, and pressure on Nagpur police failedThe cyber crime station in-charge reported that the criminals operated by creating a fictitious entity named Delta Enterprises, complete with a website designed to resemble a legitimate trading company called Lexatrade.com. They duped their victims by promising lucrative investment opportunities in Forex trading.The modus operandi of these fraudsters involved the use of current accounts for their illicit activities. The arrested individuals paid a substantial sum of one lakh rupees to the mastermind while using savings accounts with a balance of Rs 40 thousand. Further investigations revealed that Rs 21 lakh had been transferred to the account of the apprehended Hemant Singhania.This international fraud operation was conducted through trading accounts that spanned Dubai and Delhi, showcasing the scope and sophistication of the scheme. One of the masterminds behind this criminal network goes by the name of Annie, who was the key contact for the arrested individuals.Also Read: Cybercrime in Nagpur - Cyber Blackmailer Couple Arrested in Pune for Extorting MoneyThe gang employed a cunning strategy by registering fake firms under the guise of legitimate businesses. They opened current accounts in the names of these fabricated entities, fraudulently obtaining MSME and GST registrations. To further their deception, they rented shops in Rohini, Delhi, under Tarun Kashyap's name, where they displayed the firm's signage. They even went to the extent of taking photographs of bank employees to facilitate the opening of current accounts in the firm's name. Shockingly, each shop hosted a total of 25 registered firms with corresponding current accounts. The ongoing investigation also includes scrutiny of the potential involvement of bank employees in this elaborate scam.In summary, the Noida Cyber Crime Police have successfully dismantled a large-scale investment fraud operation, underscoring the importance of vigilance and caution when engaging in online investment opportunities.Source: https://www.the420.in/forex-investment-fraud-running-from-dubai-busted-three-arrested/

[creative-pens]

Kewal Ahuja’s SGF India Fraud Breaks Cover – The Franchising Sector In India Fills With Scams

SGF (Spice, Grill and Flame) incorporated dated January 29th, 2019, with the main objective of providing food services and ancillary objective included the business activities related to this industry and having Liaison offices and services rendering. SGF’s Kewal Ahuja is one among those franchisee owners who has grown up well in the franchising segment of business. He has become an owner of franchisee from few to many, from nowhere to everywhere.

According to the latest reports the billion-dollar sector of franchising in India is induced with scams and politics and Kewal Ahuja’s SGF is one among them. He is the BJYM treasurer of Delhi Pradesh and keeps a clean image in front of the public. His fraud comes out as the cheated franchisees make complaints and an analysis of the company accounts is made. Paid PR and advertisement clean his image on media and social media.

A deep analysis has been done of SGF and its sister concern company to highlight facts:

Both SGF and spice are registered at same address.

Kewal Ahuja remains as Key management in both the company. Both are related parties; spice is a sister concern of SGF.

The sister concern- spice’s reported turnover for last 3 years is as follows.

Y & Y (INR)

2017–18–1.26 crore

2018–19–2.54 crore

2019–20- 2.70 crore

SGF in all these 3 years have reported NIL returns in GST and Income tax. However, the sister concern’s reported top line is mentioned above. This is a potential angle of fund misappropriation. SGF has a track record of statutory non-compliance in GST and MCA filings as well.

[baitdragon]

Potential Financial Fraud In Kewal Ahuja’s SGF India: Tax Irregularities Follows

Food franchises enjoy a large amount of popularity in India, especially among the youngsters which translates into financial success for the owners of these businesses in the modern day. On the other hand, picking the incorrect one will cost you both time and money. As the Indian franchising business is increasing in fame, so is the scams and politics in the franchising. The Kewal Ahuja instance is a shocking example for the youngsters to check on the company well enough before investing your time and money.

Spice, Grill, Flame (SGF) and owner Kewal Ahuja have been a much clean imaged business and owner in front of the public till their fraud and fund misappropriation details gets revealed.(SGF)Kewal Ahuja presented this business to the franchisees in such a way that it had looked so tempting & lucrative business with high return value in minimum frame of time. The people who were being told to leave their job or lost their jobs during this pandemic, were in need of finding an option to get their livelihood generated by some or the other means of business.

These people and other youngsters fell for the promises given by Kewal Ahuja and invested their money in the SGF franchising. These people lost their money as the promises on profit generation were not kept and also were denied giving back their money. Moreover, 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.

The details of SGF’s statutory non-compliance 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 mandator 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 no follow the going concern.

· SGF has filed no returns the 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 may highlight 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. GST number of Mumbai is active however, there is no return filed by company since September 2021.

All those interested investors should be cautious and refrain themselves from investing in brand SGF owned by Kewal Ahuja, where cheating and doing fraud has been kept as a main criterion of the business.