In a setback to US-based McDonald's, 43 of the the fast food chain's 55 outlets in Delhi will be shut from Thursday, on account of a failure to renew eating house licences by its North and East India licensee, Connaught Plaza Restaurants Pvt Ltd (CPRL).
CPRL is the local joint venture between Vikram Bakshi and McDonald's.
When contacted, McDonald's said "the eating house licenses of a number of McDonald's restaurants in Delhi have expired".
Since the last two years, Vikram Bakshi and McDonald's are at loggerheads over control of CPRL and arbitration proceedings are being pursued by the food chain at the London Court of International Arbitration.
Without specifying a number, a highly placed source said that more outlets in the capital could be shut as a result of expired licences.
"The Board of CPRL is working to obtain the required licences. Pending this, CPRL is temporarily suspending the operations of the affected restaurants," McDonald's India Pvt Ltd (MIPL) spokesperson Barry Sum said.
As per reports, the company plans to continue paying salaries to its staff during the suspension.