Compass Group's Elior India acquisition stalled due to governance glitches

The tribunal directed Elior India to deposit Rs 9 crores as interim relief for dues payable to the former CEO Sanjay Kumar should it decide to proceed with the sale

The acquisition of Elior India, a subsidiary of the Paris-listed catering and related services company Elior Group, by a British multinational contract foodservice company Compass Group, has been stalled due to an arbitral order which prohibits Elior India from selling its assets. 

The award of an arbitration tribunal in Bengaluru highlighted several governance glitches in Elior India’s conduct with regard to discharging its duties and dues toward its employees. 

The tribunal in the arbitration case of Elior India versus its former CEO Sanjay Kumar restricted the sale of Elior assets and directed Elior India to deposit Rs 9 crores as