Connaught Plaza Restaurants Pvt Ltd (CPRL), McDonald’s licensee in North and East India, has suspended operations of the restaurants that have lost the eating house licences
Burger and fries chain, McDonald’s India said the licences of a number of its restaurants in Delhi have expired and that the franchisee that operated the facilities is working to obtain the permits back.
Connaught Plaza Restaurants Pvt Ltd (CPRL), McDonald’s licensee in North and East India, has suspended operations of the restaurants that have lost the eating house licences, the company said in a statement.
Barry Sum, spokesperson, McDonald’s India Private Ltd (MIPL), said, "But the development won’t affect any jobs."
He said, "We understand that CPRL is retaining the employees of affected restaurants and will pay them their salary during the period of suspension."
The company said McDonald’s is committed to ensuring that its restaurants operate in full compliance with its standards and applicable regulations.
The company in a statement said, "While there are ongoing legal disputes, suspending the operations of the restaurants is a collective decision of the CPRL board of directors."
CPRL is an equally owned joint venture between Vikram Bakshi and MIPL.
While there were administrative issues between the two sides, matters turned ugly in 2013 when McDonald’s India removed Bakshi as the managing director of the joint venture, on allegations of serious misconduct and financial irregularities.
Bakshi dragged the MIPL to the Company Law Board and the legal battle over ownership and settlement is still continuing.