McDonalds India Private Limited (MIPL) had formed a joint venture in 1995 with Vikram Bakshi, a real estate hospitality magnate, both the parties owning 50% of the share. The joint venture was named Connaught Plaza Restaurant Ltd (CPRL). In 2008, when CPRL was operating 70 McDonald's outlets, MIPL offered to acquire Bakshi’s share in the joint venture first for $5 million which was revised to $7 million. This offer would have given only $2 million more than Bakshi's initial investment while his money was locked for around 13 years and he had expanded MIPL’s restaurant to 167 outlets during this period. The offer shocked Bakshi who hired Grant Thornton (GT), a consulting firm, for a fair valuation of the firm. Way back, in 2009, GT valued CPRL at $331 million. Taking into consideration the deductions, the value of Bakshi's share worked out to around $100 million. MIPL went on pressurizing Bakshi to sell his share but the GT valuation was not agreeable to them. Pursuing the matter, MIPL, in 2009, invoked arbitration clause of the contract which provided for the settlement of dispute at the London Court of International Arbitration (LCIA). This action of MIPL was despite CPRL having started making profits. Further, Bakshi was voted out from the position of Managing Director (MD) of CPRL by MIPL directors. They had accused him of wrongdoings to the firm.
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