Delhi: 43 out of 55 outlets of McDonald's to remain shut temporarily

Fast food major McDonald's is shutting 43 outlets out of 55 in Delhi from Thursday.

The outlets have lost their eating house licences, however, the global burger joint claims that their licences have expired.

According to a Financial Express report, this could be linked to the infighting between Connaught Plaza Restaurants (CPRL) and McDonalds.

Vikram Bakshi, former managing director of CPRL, told the daily that the operations of 43 restaurants operated by CPRL has been temporarily suspended.

McDonald's has two representatives on the CPRL board, while the decision was taken in a board meeting that took place on Wednesday morning via Skype. This would leave over 1,700 employees jobless. 

Though there has been no word from the estranged partners on the issue, a few months back a court in Delhi has summoned the CEO of McDonald's Corporation, top officials of McDonald's India and several businessmen for alleged criminal conspiracy and siphoning of hundreds of crores from CPRL.

The complaint was filed by Delhi-based Deepak Khosla against these top officials, including Bakshi and his wife for siphoning of over Rs 409 crore from the company and falsifying its books of accounts.

The matter was referred to the SEBI chairman for examining the case for contravention of provisions of the SEBI Act and Regulations made thereunder.

(With agency inputs)