McDonald's dispute: Singhvi writes to CPRL logistics partner to resume supply

Justice G S Singhvi, the administrator on the CPRL board, has written to its logistics partner Radhakrishna Foodland to resume supplies to the restaurant chain immediately so that the outlets shut in East and North India can restart operations.

McDonald's estranged JV partner Vikram Bakshi said nearly all outlets of the food chain in East India have been shut and several others in the north are on the brink of closure due to discontinuation of supplies by its logistics partner.

All in all, there are over 80 outlets that have been hit by this cut-off in supplies by Radhakrishna Foodland, a move which is seen as a fallout of the ongoing spat between the fast food major and CPRL-led Bakshi.

CPRL is a 50:50 joint venture between McDonald's India Pvt Ltd (MIPL) and Bakshi.

While the legal tussle between the entities is going on at various forums, including the Delhi High Court, the NCLT in July had appointed Singhvi as the administrator to ensure smooth functioning of the restaurants run by CPRL.

"Justice G S Singhvi has written two letters to Radhakrishna Foodland asking them to resume supplies, saying it is in the best interest of CPRL and all business associates that such advice is heeded and complied with immediately," Bakshi told PTI.

Bakshi has been fighting for his position since 2013 when he was ousted as Managing Director of CPRL by the US-based food chain, which he challenged at the NCLT.

The NCLT while reinstating Bakshi to his position appointed Justice Singhvi as the administrator.

Stating that the cut-off in supplies has not just disrupted and jeopardised the business directly, but is also in contravention of the NCLT order which ordered smooth functioning of CPRL, Singhvi said.

Alleging involvement of the fast food chain for the suspension of supplies, Bakshi said: "We can make out who has pressurised them, there is no doubt about that."

Meanwhile, a McDonald's India spokesperson said: "This is between CPRL and their vendors, not MIPL. The allegation of us being involved in the decision comes from someone with whom we have had ongoing legal disputes."

Radhakrishna Foodland Pvt Ltd had written to CPRL, saying it is discontinuing the supply chain services due to a reduction in volume and uncertainty of future, among others, as also non-payment of an additional amount of Rs 2 crore.

Bakshi, however, said Rs 2 crore were not part of the regular monthly payments and the logistics partner has held back his stock paid for approximately Rs 10 crore.