43 McDonald’s Restaurants Closed In Delhi
New Delhi: Fast food giant McDonald’s is shutting off 43 of its outlets across Delhi-NCR starting Thursday. As Connaught Plaza Restaurants Pvt Ltd (CPRL) could not secure regulatory health clearance to run the business, it was forced to close down 43 out of 55 of its outlets.
The firm had been mired in legal tangles over ownership and maintenance of quality and hygiene at the stores since mid-2013. The member of CPRL Board, Vikram Bakshi declared, “It is unfortunate, but we are closing 43 restaurants under CPRL temporarily.”
The decision comes at a time when the long-drawn battle over the ownership of CPRL between its founder Vikram Bakshi and McDonald’s India has dislodged the company from the growth track. McDonald’s stated that the restaurants are being closed as the eating house license expired.
Nearly 1700 people lost employment due to this decision. Due to the legal mess between Bakshi and McDonald’s India, CPRL did not renew the regulatory health licences. Bakshi stepped down as CPRL managing director in 2013, August. Due to this, a dispute arose between McDonald’s and Bakshi. A trial is going on in the Company Law Board. In West and South India, the McDonald restaurants are being run by Hard Castle Restaurants (HRPL) through Westlife Development Limited. Around 242 restaurants are under HRPL.