43 out of 55 McDonald's outlets closed due to health license, legal battle

43 out of 55 McDonald's outlets in Delhi are shutting down, media reports said on Thursday, for the decision of the shock, the North Indian franchisee and the global food giant attributed the conflict between the vast.

"Due to the 'eating houses of home-dinning homes', many restaurants of McDonald's in Delhi have expired, the board of Kanat Plaza restaurant Private Limited (or" CPRL ", licensed in north and eastern India of McDonalds) receives the necessary license. It is pending, CPRL is temporarily suspending the operation of the affected restaurant, "McDonald's India Private L Mited (Maipiel) said in a statement.

The report says that as a result of the shutdown, there will be a shortage of 1,700 jobs, MIPL said, "We understand that CPRL is retaining employees of affected restaurants and will pay them during the suspension period."

According to the reports, a legal battle over the lack of revenue, lack of investment and the ownership of the fast food chain created trouble.

Former CRPL managing director Vikram Bakshi said, "It is unfortunate, but temporarily suspended for operating 43 restaurants operated by CPRL." During the meeting of the board through Skype on Wednesday morning it was decided to shut down.

Connaught Plaza Hotel Private Limited (CPRL) is a 50:50 joint venture between its founder Vikram Bakshi and MIPL, which runs fast food chain in North and East India.

The trouble started in 2013 when India of McDonald's removed Bakshi as managing director of Joint Venture, then he made fraudulent allegations.

There were four members on the Board of JV- Bakshi , his wife and two representatives of the American company

Bakshi challenged his expulsion in the Company Law Board, after starting a long legal battle between the shares of the company and the proprietary portion between both the parties, obstructing the operations

According to the Business Standard, "Maintaining cleanliness and store-level efficiency since 2014 has become a major headache since 2014, because of day-to-day operations."

With falling revenue and sales, in 2013 Domino changed McDonald's into the country's largest Accelerated Service Restaurant (QSR) series. The report says that the number of stores opened in a year has decreased from 27 to 27 in 2012, according to the report.

MIPL said in the statement, "India is becoming an important market for McDonald's and we are committed to working with CPRL to resolve this issue as soon as possible."