Banan lodges FIR against IEP

Legals

BY - Franchise India Team
Editor Aug 07, 2014/

120

/ 2 MIN READ.

Jayaram Banan, promoter and founder of Sagar Ratna has filed an FIR against the restaurant's current management led by private equity firm India Equity Partners (IEP) over allegations of cheating, fabrication and forgery of documents.

Banan has resigned as chairman of Sagar Ratna as per the agreement between him and IEP inked three years ago which ended in June. Now, as part of the same agreement, he wants to sell off his 22.7% equity in Sagar Ratna at current valuations.

IEP holds 73-75% of Sagar Ratna and the Banan family owns the rest. Banan lodged an FIR against IEP partners Sid Khanna and Ravi Sampat as well as Sagar Ratna Restaurants CEO Murli Parna based on the accusations cited above. However, IEP in turn has accused Banan of violating their contract by starting a restaurant chain Shri Ratnam. According to an IEP spokesperson, “This is a spurious and false FIR. We have lodged multiple civil cases against Banan and associates, which include severe breach of non-compete, interference in the operation of Sagar Ratna restaurants and use of force. He has political patronage from the highest levels in the Congress party, and we have taken this matter to the highest governing authorities.”

Policy

Hotel associations objects govt's move

BY - Franchise India Team
Editor Jul 05, 2014 / 2 MIN READ

Hotel associations like Federation of Hotel and Restaurant association in India (FHRAI) and Hotel and Restaurant Association of Western India (HRAWI) have objected the Maharashtra government move to ban the performances across all hotels and restaurants by bringing an amendment to the Maharashtra Police Act.

The state assembly had recently passed the amendment to the Act to plug the loopholes in the existing laws and enact a ban on dance bars and performances across all categories of hotels. The newly amended bill also proposes hefty penalties in case of violations.

Commenting on the move, SM Shervani, President, FHRAI, said, “It is ridiculous if we have to establish what exactly performance is and what isn’t. If it is found that under the name of performance several illegal activities such as drugs or prostitution are taking place in a hotel, action should be taken on that particular hotel and licence of that hotel should be taken away. Banning performances across all hotels is not a solution to the problems. There has to be change in the mentality of people and that is what will protect women.”

Earlier such ban was implemented in all hotels, bars and restaurants below three-star category but now it has been extended to all three to five starred hotels. DS Advani, President, HRAWI, said, “Such a law would never work across hotels. You cannot ban people from dancing, listening to music, performing or having fun. A blanket ban on performances at hotels is not a solution to stop illegal activities for sure.”

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