NEW DELHI, June 29 (Xinhua) -- McDonald's Thursday shut down 80 percent of its outlets in Delhi over a reported bitter battle between the global burger giant and its northern Indian franchisee.
In northern and eastern India, McDonald's is actually a joint venture between the U.S.-headquartered global burger giant and Delhi-based Connaught Plaza Restaurants Private Limited (CPRL) owned by Indian entrepreneur Vikram Bakshi.
However, in an official statement, McDonald's India Pvt Ltd (MIPL) said it was closing down 43 out of its 55 outlets in the Indian capital as their food licences have expired.
"The eating house licenses of a number of McDonald's restaurants in Delhi have expired. The board of Connaught Plaza Restaurants Private Limited is working to obtain the required licenses. Pending this, CPRL is temporarily suspending the operations of the affected restaurants," it said.
Getting a food licence renewed is not a big deal in India.
Reacting to media reports that over 1,700 jobs will be lost due to its closing down of 43 outlets in Delhi, MIPL said, "We understand that CPRL is retaining the employees of affected restaurants and will pay them their salary during the period of suspension."
Meanwhile, media reports said trouble has been brewing in MIPL since 2013 when McDonald's India removed Bakshi as the managing director of the joint venture, alleging misconduct.
Bakshi wasted no time in taking the matter to the Company Law Board, initiating a long legal battle between the two parties over share and ownership of the company, thus hampering the day-to-day operations in northern India particularly, reports said.
However, MIPL said, "India continues to be an important market for McDonald's and we are committed to working with CPRL to resolve the issue as soon as possible."
