Housing and Development Corporation Ltd (HUDCO) has filed a court case against Vikram Bakshi, former managing director and a key shareholder of Connaught Plaza Restaurants Ltd (CPRL), the master franchisee for McDonald’s chain in the north and east regions in the country.
The government body has filed a criminal case under Negotiable Instruments Act against Bakshi for loan default and bounced cheques for Bakshi’s privately held firm, as per separate reports by PTI and The Economic Times.
Bakshi had taken a Rs 60 crore loan from HUDCO for his privately held hospitality company Ascot Hotels & Resorts Pvt Ltd. According to HUDCO, the default amount has now touched Rs 75 crore with penal interest, due to bouncing of cheques.
Sanjeev Gulati, CFO, Ascot Hotels, told PTI that HUDCO has been demanding repayment of principal even before the project became operational. “We have already paid above Rs 40 crore as interest and principal without the project being operational,” he said.
Ascot Hotels operates premium serviced apartments, wayside amenities and specialty restaurants. Most of these chains are operated under the brand name, Savoy.
A separate story by The Economic Times said global burger chain McDonald’s told the Company Law Board (CLB) that Bakshi committed breach of agreement by pledging his shares of the 50:50 joint venture (CPRL) with financial institutions to raise funds for his hospitality businesses (Ascot Hotels).
Last week, Bakshi moved CLB against the American fast food chain for removing him from the post of managing director of their JV CPRL and seeking to wrest control of the venture by buying him off cheap.
Bakshi’s term as managing director for the firm which runs McDonald’s operations in northern and eastern regions in the country expired in July.
(Edited by Joby Puthuparampil Johnson)