South African court hears fraud case against Harmony salon network owner — TimesLIVE
In Boksburg, South Africa, the Palm Ridge Commercial Crimes Court is hearing a criminal case against Jannel Joshi, the owner of the Harmony franchise group. Prosecutors decided to charge her with fraud and attempted extortion in a dispute over the sale of the Harmony Nail and Beauty Wellness Studio salon.
As TimesLIVE reports, franchise buyer Surekha Dulabh said she spent her pension funds and savings to purchase a salon in Boksburg for R1.15 million. In September last year, she paid Joshi an R800,000 deposit. Dulabh was to pay the remaining R350,000 in interest-free monthly instalments after the salon opened.
Dispute over the handover of the salon
Dulabh claims that delays arose during preparations for the opening, involving renovations, staff recruitment and training, marketing, and fitting out the premises. According to her, the salon was still not ready by the end of October, although Joshi allegedly promised to complete the work by November 12. The buyer said that this deadline also passed without the handover of a fully equipped salon.
Dulabh then filed complaints alleging fraud and deception, and also approached the Consumer Goods and Services Ombud and the National Consumer Commission. She said Joshi's lawyers later stated that the salon was ready for handover on condition of written confirmation that the criminal complaints and complaints to consumer bodies had been withdrawn.
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In January, Dulabh said she considered the franchise agreement breached and demanded that the agreement be cancelled and her money returned. In response, Joshi's lawyers said they intended to recover the unpaid R350,000, interest and legal costs from her, as well as take operational control of the salon. Dulabh says Joshi has been running the establishment since January.
The parties' positions and decisions by authorities
Joshi's representative, Mohsin Sharif, rejected Dulabh's account and said the dispute is the subject of active litigation. According to him, the delays were related, among other things, to premises preparation, contractor work, procurement and changes to specifications, while Harmony did not breach the terms of the agreement. He also denied claims that the handover of the salon was linked to the withdrawal of complaints and reports.
On June 26, Gauteng Deputy Director of Public Prosecutions Rendani Ndou, after reviewing an earlier decision not to prosecute, said that in his view there was sufficient evidence to charge Joshi with fraud. On July 28, he ordered the proceedings to continue with an additional charge of attempted extortion. Sharif stressed that criminal prosecution itself does not prove Joshi's guilt.
In June, the National Consumer Commission completed its review of Dulabh's complaint and recommended action against Harmony, including returning all funds to the buyer, compensating damages and imposing a substantial fine. The materials were referred to the National Consumer Tribunal, which is to determine possible measures. Separately, Harmony filed a civil claim against Dulabh for R1.476 million in damages which, according to Sharif, are related to the franchise agreement.
