The estranged Indian partner of McDonald's, Vikram Bakshi, on Thursday offered buying out the US food major's stake in their joint venture Connaught Plaza Restaurants.
As part of the agreement, McDonald's has acquired 50 per cent voting equity shares in Connaught Plaza Restaurants, held by Bakshi and his affiliated entity since inception.
Bakshi had moved the application under Section 9 of the Conciliation and Arbitration Act, dealing with foreign arbitration and foreign tribunals.
McDonald's has argued that the dispute with its Indian joint venture partner Vikram Bakshi should be referred to arbitration as per the clauses of their agreement.
Cloud on whether CPRL is a subsidiary of McDonald's India or a 50-50 venture.
Bakshi said the attempt by McDonald's to terminate its agreement with him was illegal and not binding and would have no bearing on the shareholding pattern (the partners hold 50 per cent each), board composition (both sides have two nominees) or the working of the company.
In his petition to the Company Law Board filed on September 9, Bakshi said McDonald's began 'arm-twisting' him to sell his entire shareholding in Connaught Plaza Restaurants, the equal joint venture between him and McDonald's since 2008, at an 'undervalued' price of $5 million, later raised to $7 million.
Global fast food chain McDonalds, which entered India over a decade ago, plans to export dishes from its unique Indian menu to please the western palate, having tasted success in the middle-east market.
CPRL Board may meet this week to decide if the outlets in the north and east of India can be kept open till the matter is settled in courts
Vikram Bakshi says the 169 stores will remain open, McDonald's says it will take steps to enforce termination.
43 McDonald's outlets in New Delhi-National Capital Region were forced to down shutters following lapse of their eating-out or health licences in June.
Default in payment of royalties to McDonald's India for nearly two years was the key reason behind the fast-food chain's decision to terminate franchise agreement
McDonald's problems couldn't have surfaced at a worse time. Cut-throat competition, rapid expansion and a slowdown in consumer spending in the wake of demonetisation have seriously dented the overall quick-service restaurant business.
© 2026 Rediff.com - Advertise with us - Disclaimer - Privacy Policy - Sitemap - Feedback - About us - Terms of use - Grievances