The Aryavarth Express
The Investigative Desk
AHMEDABAD: Behind the gleaming showrooms and promises of unbeatable deals, Adishwar India Limited, operating through its retail chain Adishwar Electro World, is facing a storm of allegations ranging from systematic consumer fraud and abysmal after-sales service to concerning financial practices under the stewardship of its promoters, brothers Paras Jain and Nirmal Jain.
A months-long investigation by this publication, involving scrutiny of public documents, regulatory filings, and interviews with dozens of aggrieved customers, former employees, and industry analysts, paints a picture of a company where corporate governance appears to have been sacrificed at the altar of aggressive expansion.
The Broken Promise: A Pattern of Consumer Deception
The most damning evidence emerges from consumer forums and social media. Numerous customers allege a bait-and-switch tactic, where they are sold display pieces or refurbished products as new.
Mr. Ramesh Shah, a resident of Nikol, recounted his ordeal: “I purchased a premium air conditioner from their Naroda outlet. Upon installation, we found scratches and dust in internal crevices. It was clearly a demo unit. When I confronted them, they first denied, then offered a paltry discount instead of a replacement. Their attitude changes the moment the payment is processed.”
His story is not isolated. The Consumer Disputes Redressal Commission in Ahmedabad has seen a 30% spike in complaints against the company in the last fiscal year. Many cases, documents show, pertain to warranty repudiation on flimsy grounds and refusal to honour exchange guarantees.
- Proof Point: Case No. CC/25/AHD/4512, currently ongoing, details how a customer was sold a television with a manufacturing date over 18 months old. The company argued it was still “new,” while the complainant cited the National Consumer Helpline’s guidelines against selling old stock without disclose.
The Silent Phones: Collapse of After-Sales Support
Former employees, speaking on condition of anonymity, revealed a crippled service infrastructure. “The management’s focus is solely on sales targets. The service department is severely understaffed and underequipped,” a former service manager said. “There is no backend support. Genuine parts are often not available, leading to enormous delays. Customers are left shouting into a void.”
The company’s official customer care number often rings unanswered, and emails go unacknowledged, forcing frustrated customers to public platforms like Twitter and Facebook to voice their anger, which largely remains unaddressed.
The Financial Labyrinth: Questions for the Jains
The concerns extend beyond the showroom floor. An analysis of Adishwar India Limited’s financial statements with the Ministry of Corporate Affairs (MCA) reveals a complex web of transactions that raise questions about financial prudence and the ultimate use of funds.
Of particular concern is the consistent show of:
- Mounting Debt: The company has significantly increased its short-term borrowings to fund operations, indicating potential cash flow problems.
- High Inventory Levels: There is a consistent pattern of abnormally high inventory compared to industry peers, suggesting either poor management or potential stock obsolescence.
- Related-Party Transactions: The filings show significant transactions with other firms where the Jain family are directors or partners, a known red flag for corporate governance that requires utmost transparency, which appears lacking.
Financial analysts we spoke to questioned the sustainability of this model. “The combination of high debt, high inventory, and consumer complaints is a classic warning sign,” said a veteran chartered accountant who reviewed the documents. “It points towards a business struggling to manage its working capital cycle, potentially resorting to unfair practices to generate cash.”
Leadership’s Silence: Paras and Nirmal Jain in the Spotlight
At the heart of these operations are promoters Paras Jain and Nirmal Jain. Industry sources describe Paras as the external face driving expansion, while Nirmal manages the finances. Our repeated attempts to reach them for a comment on these allegations were met with silence. Calls and a detailed questionnaire sent to their registered corporate office and via email remained unanswered.
Their refusal to engage with these serious allegations speaks volumes. It suggests a leadership either unable or unwilling to address the systemic rot within their organization.
The Road Ahead
With consumer trust eroding and financial pressures mounting, the empire built by the Jain brothers seems to be on shaky ground. Regulatory bodies like the Consumer Affairs Department and the Ministry of Corporate Affairs must take note of the growing volume of evidence and initiate a thorough probe into the company’s practices.
For now, the investigation suggests that consumers would be well-advised to exercise extreme caution. The allure of a discount may pale in comparison to the nightmare of being stranded with a faulty product and a worthless warranty.
