public class CategoryViewModel
    {
        public int CategoryID { get; set; }
        public string CategoryName { get; set; }
    }

    public class ProductViewModel
    {
        [ScaffoldColumn(false)]
        public int ProductID
        {
            get;
            set;
        }

        [Required]
        [DisplayName("Product name")]
        public string ProductName
        {
            get;
            set;
        }

        [DisplayName("Unit price")]
        [DataType(DataType.Currency)]
        [Range(0, int.MaxValue)]
        public decimal UnitPrice
        {
            get;
            set;
        }

        [DisplayName("Units in stock")]
        [DataType("Integer")]
        [Range(0, int.MaxValue)]
        public int UnitsInStock
        {
            get;
            set;
        }

        public bool Discontinued
        {
            get;
            set;
        }

        [DisplayName("Last supply")]
        [DataType(DataType.Date)]
        public DateTime LastSupply
        {
            get;
            set;
        }

        [DataType("Integer")]
        public int UnitsOnOrder 
        { 
            get; 
            set; 
        }

        [UIHint("ClientCategory")]
        public CategoryViewModel Category 
        { 
            get; 
            set; 
        }

        public int? CategoryID { get; set; }

        public string QuantityPerUnit { get; set; }
    }

@model Kendo.Mvc.Examples.Models.CategoryViewModel

@(Html.Kendo().DropDownListFor(m => m)
        .DataValueField("CategoryID")
        .DataTextField("CategoryName")
        .BindTo((System.Collections.IEnumerable)ViewData["categories"])
)

    public class GridController : Controller
    {
        public ActionResult Index()
        {            
            PopulateCategories();
            return View();
        }

        public ActionResult Read([DataSourceRequest] DataSourceRequest request)
        {
            return Json(productService.Read().ToDataSourceResult(request));
        }

        [AcceptVerbs(HttpVerbs.Post)]
        public ActionResult Update([DataSourceRequest] DataSourceRequest request, 
            [Bind(Prefix = "models")]IEnumerable<ProductViewModel> products)
        {
            if (products != null && ModelState.IsValid)
            {
                foreach (var product in products)
                {
                    productService.Update(product);
                }
            }

            return Json(products.ToDataSourceResult(request,ModelState));
        }

        [AcceptVerbs(HttpVerbs.Post)]
        public ActionResult Create([DataSourceRequest] DataSourceRequest request, 
            [Bind(Prefix = "models")]IEnumerable<ProductViewModel> products)
        {
            var results = new List<ProductViewModel>();

            if (products != null && ModelState.IsValid)
            {
                foreach (var product in products)
                {
                    productService.Create(product);

                    results.Add(product);
                }
            }

            return Json(results.ToDataSourceResult(request, ModelState));
        }

        [AcceptVerbs(HttpVerbs.Post)]
        public ActionResult Destroy([DataSourceRequest] DataSourceRequest request,
            [Bind(Prefix = "models")]IEnumerable<ProductViewModel> products)
        {
            foreach (var product in products)
            {
                productService.Destroy(product);
            }

            return Json(products.ToDataSourceResult(request, ModelState));
        }
  

        private void PopulateCategories()
        {
            var dataContext = new SampleEntities();
            var categories = dataContext.Categories
                        .Select(c => new CategoryViewModel {
                            CategoryID = c.CategoryID,
                            CategoryName = c.CategoryName
                        })
                        .OrderBy(e => e.CategoryName);

            ViewData["categories"] = categories;
            ViewData["defaultCategory"] = categories.First();            
        }

        private void PopulateEmployees()
        {
            ViewData["employees"] = new SampleEntities().Employees
                        .Select(e => new EmployeeViewModel
                        {
                            EmployeeID = e.EmployeeID,
                            EmployeeName = e.FirstName + " " + e.LastName
                        })
                        .OrderBy(e => e.EmployeeName);
        }
    }

@(Html.Kendo().Grid<Kendo.Mvc.Examples.Models.ProductViewModel>()
    .Name("grid")
    .Columns(columns =>
    {
        columns.Bound(p => p.ProductName);
        columns.Bound(p => p.Category).ClientTemplate("#=Category.CategoryName#").Width(160);
        columns.Bound(p => p.UnitPrice).Width(120);
        columns.Command(command => command.Destroy()).Width(90);
    })
    .ToolBar(toolBar =>
        {
            toolBar.Create();
            toolBar.Save();
        })
    .Editable(editable => editable.Mode(GridEditMode.InCell))
    .Pageable()
    .Sortable()
    .Scrollable()
    .HtmlAttributes(new { style = "height:430px;" })
    .DataSource(dataSource => dataSource
        .Ajax()
        .Batch(true)
        .ServerOperation(false)
        .Events(events => events.Error("error_handler"))
        .Model(model =>
        {
            model.Id(p => p.ProductID);
            model.Field(p => p.ProductID).Editable(false);
            model.Field(p => p.Category).DefaultValue(
                ViewData["defaultCategory"] as Kendo.Mvc.Examples.Models.CategoryViewModel);
        })
        .PageSize(20)
        .Read(read => read.Action("Read", "Grid"))
        .Create(create => create.Action("Create", "Grid"))
        .Update(update => update.Action("Update", "Grid"))        
        .Destroy(destroy => destroy.Action("Destroy", "Grid"))
    )
)

<script type="text/javascript">
    function error_handler(e) {    
        if (e.errors) {
            var message = "Errors:\n";
            $.each(e.errors, function (key, value) {
                if ('errors' in value) {
                    $.each(value.errors, function() {
                        message += this + "\n";
                    });
                }
            });        
            alert(message);
        }
    }
</script>