McDonald's Indian JV partner Vikram Bakshi approaches Company Law Board

Indian partner of McDonald's north and east operations in the country, Vikram Bakshi, has approached the Company Law Board (CLB) against his removal as the managing director of the joint venture.. In his petition to the CLB, Mr Bakshi, ex-managing director and partner of McDonald's joint venture Connaught Plaza Restaurants Pvt Ltd (CPRL), accused the American fast food chain of "implementing a pre-determined scheme of attempt to take over the company (CPRL) in a coercive, oppressive and illegal manner contrary to law".. Incorporated in June 1995, CPRL is a 50:50 joint venture between McDonald's Corporation and Vikram Bakshi and has been running fast food outlets in North and East India.. Mr Bakshi claimed that McDonald's has been trying to buy him out of the company since 2008, when the JV started making profits. The first offer was made in August, 2008 for $5 million, which he said was "categorically rejected".. He further said his proposal for appointment of a third-party evaluation of his interest was rejected by McDonald's and instead the offer to buy his entire shareholding in CPRL was increased from $5 million to $7 million.. When contacted, McDonald's Asia Pacific, Middle East and Africa spokesperson said, "This is now a matter before the courts. We will therefore address this in the appropriate forum. There is no further comment.". In his petition, Mr Bakshi also accused the erstwhile joint venture partner of West and South India region of McDonald's - Hardcastle Restaurants Pvt Ltd - of having "influenced" the US fast food chain and its Indian concern "to take oppressive steps" against him.. "Even in 2011, in a meeting, the other joint venture partner for West and South-India Region expressed his desire to buy out the petitioner's shares and categorically informed Petitioner No 1 (Bakshi) that McDonald's had given him tacit approval for the same," he said in the petition.. "The West & South-India Region joint venture partner also went to the extent of saying that McDonald's would not let the petitioners function effectively if they refuse to sell out," he added in his plea.. Mr Bakshi asked the CLB to grant ad-interim injunction restraining McDonald's India, its parent firm along with directors and officials appointed by them from preventing him "from acting as or holding out or representing himself to be the managing director of the company (CPRL)".. Alleging that McDonald's has "illegally taken the control" of CPRL, he asked CLB to "maintain the status quo" on the day-to-day functioning of the company pending the adjudication of the petition and reinstate him as the managing director of the company.. Preventing him from functioning as managing director will lead to financial losses to CPRL, he added.. Mr Bakshi also alleged that McDonald's has adopted similar process for "coercive, extracting and ousting the joint ventures in Thailand, Indonesia and Pakistan".

McDonald's Indian JV partner Vikram Bakshi approaches Company Law Board

NDTV Profit

NDTV Profit

Follow Us

DISCOVER US FASTER

DOWNLOAD THE APP