Vikram Bakshi breached pact: McDonald’s

McDonald’s, the world’s leading burger and fries chain, on Monday told the Company Law Board that its equal Indian partner Vikram Bakshi committed breach of agreement by pledging his shares of the 50:50 joint venture with financial institutions to raise funds for his other hospitality businesses.

The US-based fast food chain had on August 6 removed Bakshi as the managing director of the joint venture that runs McDonald’s outlets in north and east India, prompting Bakshi to approached the Company Law Board (CLB).

Appearing for McDonald’s, senior lawyer Sudipto Sarkar said Bakshi pledged 51,300 shares of the joint venture with HDFC. He also said that Bakshi was not able to effectively carry out his duties as the head of the joint venture as he was involved with 25 other companies that he and his family have promoted.