NEWDELHI: 43 of the 55 outlets belonging to the American fast food chain in Delhi temporarily suspended operations from Thursday, after its north and east India licensee failed to renew eating-house permits.
The licensee – Connaught Plaza Restaurants Pvt Ltd (CPRL) – is a joint venture between entrepreneur Vikram Bakshi and McDonald’s India Pvt Ltd (MIPL).
“The eating-house licenses of a number of McDonald’s restaurants in Delhi have expired. The CPRL board is working towards obtaining the required permits. Pending this, the CPRL is temporarily suspending operations at the affected restaurants,” a statement issued by the MIPL read. However, it did not specify the reason or the likely duration of the suspension.
“Though unfortunate, it is correct that around 40 McDonald’s restaurants have temporarily suspended operations in Delhi from today morning,” Bakshi, who is on the CPRL board, said.
Bakshi and McDonald’s have been at loggerheads over control of the CPRL, and the matter is being pursued at the London Court of International Arbitration.