McDonald's, the US-based fast food giant, is set to take over the 165 outlets in the north and east India that are currently being run by Vikram Bakshi's Connaught Plaza Restaurant Ltd (CPRL), the Times of India reported.

"The handover process is in progress. McDonald's will look to renovate and refurbish the outlets and rework the supply chain," a senior industry executive aware of the development told ToI.

Bakshi also confirmed that a settlement is in progress.

"As has been reported, both shareholders are pursuing a settlement and I am sure you can appreciate, details of which cannot be shared at this stage”, Bakshi told ToI.

The development comes after the fast food chain and Bakshi told the National Company Law Appellate Tribunal (NCLAT) on Monday that they are working towards an out-of-court settlement to end their five-year-old dispute.

McDonald's and Bakshi's partnership began in 1995 when they signed a partnership agreement to open outlets of the US fast food chain in India for a period of 25 years.

The two partners had formed a 50:50 joint venture — CRPL — which was responsible for outlets of the fast food chain in the country's northern and eastern regions through the franchise route.

In 2017, McDonald's terminated CPRL's franchise agreement citing non-payment of royalties.

A long-winding legal tussle and battle for control of the business ensued afterwards with Bakshi keeping around 165 McDonald's branded outlets operational in northern and eastern regions of the country.

In August 2017, McDonald's had told the NCLAT that settlement of dispute with its estranged partner Bakshi was not possible.

The tussle started after Bakshi was ousted as the managing director of Connaught Plaza Restaurants (CPRL) in 2013, following which he approached the NCLT, which reinstated him to his position. McDonald's has challenged the same in NCLAT.

With agency inputs

First Published:May 8, 2019 8:01 AM IST