September 19, 2019

Erstwhile McDonald’s India head Vikram Bakshi barred from leaving the country

[ by Legal Era News Network ]


Former McDonald’s India head Vikram Bakshi has been barred by the National Company Law Appellate Tribunal (NCLAT) from leaving the country without informing the NCLAT, the Debt Recovery Tribunal (DRT) or the Debt Recovery Appellate Tribunal (DRAT) unless Housing and Development Corporation (HUDCO’s) dues of around Rs. 175 crore are cleared first.

Bakshi is facing the heat on multiple fronts as a Tis Hazari court has summoned him for fraud, forgery and conspiracy in a complaint filed by Montreaux Resorts. As per the order issued on September 9, the court said is convinced that a case of conspiracy is made out through creation of false minutes.

The NCLAT was hearing Housing and Development Corporation (HUDCO)’s plea that the out-of-court settlement between McDonald’s India and Bakshi’s Connaught Plaza Restaurants Pvt. Ltd. (CPRL) has been done in contravention to DRT’s orders.

The two-member NCLAT bench headed by Chairperson Justice S J Mukhopadhaya and Bansi Bhat observed that the settlement proceedings between McDonald’s and Vikram Bakshi are liable to be declared null and void and the position restored to status quo ante. During the last hearing, the NCLAT had given Bakshi a final chance to settle the issue with HUDCO, which claims Rs. 194 crore in dues. HUDCO wants those dues to be cleared from the money that Bakshi got from his deal with McDonald’s.

On 9th May 2019, Bakshi and McDonald’s India announced a settlement wherein the latter bout over 50 per cent shares held by Bakshi and his wife in CPRL for an undisclosed amount. The NCLAT will review the settlement. The appellate tribunal has also said that the deal will not be granted effect until further orders and that it would examine if the deal was done in accordance with the laws.

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