A complaint has sought investigation by the Directorate of Enforcement (ED) under the Prevention of Money Laundering Act, 2002 (PMLA), raising allegations of operation of shell entities, diversion of investor funds, GST evasion and fraudulent business restructuring by SUIIDHAAGA LIFESTYLE PRIVATE LIMITED and SUIIDHAAGA MULTITRADE PRIVATE LIMITED along with its director, Siba Shankar Dash.
The complaint states that serious circumstances have emerged requiring immediate investigation by GST authorities regarding the functioning of two interconnected entities — SUIIDHAAGA LIFESTYLE PRIVATE LIMITED (GSTIN: 21ABHCS0090H1ZN) and SUIIDHAAGA MULTITRADE PRIVATE LIMITED (GSTIN: 21ABSCS6318K1ZY). It has been alleged that the GST registration of SUIIDHAAGA LIFESTYLE PRIVATE LIMITED was cancelled suo motu with effect from 15 July 2025, whereas the GST registration of SUIIDHAAGA MULTITRADE PRIVATE LIMITED became active from 3 February 2026.
According to the complaint, the sequence of events creates strong suspicion that business activities, customers, commercial operations and financial dealings may have been shifted from one entity to another to avoid liabilities, statutory compliances and obligations toward franchisees, creditors and revenue authorities.
The complaint further alleges that both entities use substantially similar trade names, websites and operational structures, thereby indicating continuity of business operations despite cancellation of GST registration of the earlier company. It claims that the arrangement may indicate use of shell or dummy entities to continue business operations under a different corporate structure.
According to the complaint, Mazahir Hussain Baroda Wala entered into a Franchise/Carrying & Forwarding Agreement dated 2 February 2024 with SUIIDHAAGA LIFESTYLE PRIVATE LIMITED after representations that the company was engaged in genuine business operations. Under the arrangement, he allegedly invested ₹1 crore under a category promising fixed lifetime payments of ₹2 lakh per month.
The complaint states that the company initially made partial payments aggregating approximately ₹21.60 lakh but subsequently stopped payments after 27 December 2024 and failed to honour further commitments.
The complainant has further alleged that two cheques of ₹25 lakh each were issued toward discharge of liability, but one of the security cheques was dishonoured, as reflected in an ICICI Bank communication dated 1 May 2026. The complaint claims that dishonour of cheques, alleged refusal to accept legal notices and cessation of payments indicate deliberate inducement and fraudulent conduct from the outset.
The complaint raises concerns regarding the functioning of two allegedly interconnected entities—SUIIDHAAGA LIFESTYLE PRIVATE LIMITED and SUIIDHAAGA MULTITRADE PRIVATE LIMITED. It states that the GST registration of SUIIDHAAGA LIFESTYLE PRIVATE LIMITED was cancelled with effect from 15 July 2025, while the registration of SUIIDHAAGA MULTITRADE PRIVATE LIMITED became active from 3 February 2026. The complainant alleges that business operations, customers, receivables and commercial activities were shifted from one entity to another to evade liabilities and regulatory scrutiny.
The complaint also alleges that both entities used substantially similar trade names, websites and operational structures. Based on website comparisons and public information, it has been claimed that the newer entity portrayed continuity of the earlier business despite cancellation of GST registration of the previous company. According to the complaint, this raises suspicion of the use of shell or dummy entities to continue operations under a different corporate structure.
Another allegation concerns discrepancies in business activities. While GST registration details reportedly indicate activities relating to garments, cosmetics and hygiene products, the complaint states that associated persons were allegedly promoting and marketing real estate projects and plots through advertisements and promotional materials. The complaint alleges that such differences may indicate concealment of actual business operations, suppression of turnover and diversion of funds.
The complaint further alleges a broader pattern involving use of interconnected entities, migration of business activities, concealment of taxable transactions, dishonest inducement of investors and franchisees, failure to deposit TDS after June 2024, and possible siphoning of investor funds. It invokes various provisions of the Bharatiya Nyaya Sanhita, CGST Act and Companies Act as possible scheduled offences that may attract PMLA provisions.
Seeking ED intervention, Mazahir Hussain Baroda Wala has requested investigation into financial transactions, bank accounts, related-party dealings, layering of funds and possible attachment of assets under PMLA provisions. The complaint also requests coordination with GST authorities, Income Tax authorities and the Registrar of Companies for collection of financial and corporate records.Â
The allegations contained in the complaint are claims made by the complainant and would be subject to investigation and verification by the competent authorities.
