McDonald’s estranged Indian partner seeks return of leased properties
On Tuesday, Vikram Bakshi – the estranged Indian partner of McDonald’s Corp – asked the US fast food chain to return all the prime properties which had been leased to the company to set up its restaurants in India.
The arguments on behalf of Bakshi were concluded by his counsel S N Mukherjee, at the Company Law Board (CLB) on Tuesday. Mukherjee said that the allegations which McDonald’s had levelled against Bakshi were “unfair” and “absolutely mala fide.”
The scuffle between Bakshi and McDonald’s is rooted in the 50:50 joint venture – called the Connaught Plaza Restaurants Ltd (CPRL) – which the two parties incorporated on June 1995. The joint venture – formed for 25 years – has been running the McDonald’s fast food outlets in North India as well as East India.
While McDonald’s has accused Bakshi of running other businesses and not devoting adequate time to CPRL, Bakshi has asserted that the fast food company was aware of his other businesses at the time of signing the joint venture.
Bakshi has also said that he leased properties to run the McDonald’s restaurants; and that he himself has given his nine properties – including a location at Regal – to McDonald’s on lease.
Since McDonald’s had terminated the CPRL joint venture agreement with Bakshi in November 2013, Bakshi – demanding the return of leased properties from McDonald’s – said: “… they (McDonald’s) should leave all properties for me.”
Source – The Hindu Business Line
