McDonald’s estranged partner Vikram Bakshi said 18 out of the 43 outlets of the burger chain in the capital that have been closed since June due to expiry of eating house licences, reopened today. The development follows a decision by the board of Connaught Plaza Restaurants Ltd (CPRL), which passed a resolution on September 17 to reopen 21 outlets for which health licences have since been received, Bakshi said in a statement today. He further said: “18 restaurants in Delhi have reopened today.”
This decision has been taken by the board of CPRL, chaired by NCLT appointed administrator Justice G S Singhvi, in the best interest of employees, vendors, landlords and all stakeholders, he added. When contacted, McDonald’s India said: “Consequent on the termination of the franchise agreements of 169 McDonald’s restaurants operated by CPRL in the North and East of India, effective September 6, CPRL is required to cease using the McDonald’s System and is no longer authorised to operate McDonald’s restaurants.”
The company further said: “We will continue to take steps to exercise our legal and contractual rights.” In June, 43 outlets operated by CPRL were closed after the expiry of eating house licence.
Bakshi and McDonald’s India have been fighting it out at courts over termination of franchise licence by the US-based fast food chain last month. The fate of 169 outlets run by CPRL in north and east India became uncertain after the expiry of notice of termination of licence earlier this month.
While Bakshi is contesting at NCLAT here, the fast food major had approached the London Court of Arbitration, which last week asked Bakshi to sell his stake in the 50:50 joint venture, CPRL, to McDonald’s India.