Pernod Ricard’s recent appeal to obtain a liquor license in New Delhi has been rejected by the city’s excise department, according to an official order. This rejection is due to ongoing investigations into suspected violations of the city’s liquor policy.
The rejection order cites an ongoing investigation by India’s federal financial crime agency, which has accused Pernod of illegal profiteering, providing false information to Delhi officials, and violating rules by financially supporting retailers in exchange for stocking more of its brands.
Pernod’s appeal argued that the company had fulfilled all requirements for the city license and that city officials were pre-empting ongoing criminal proceedings.
This rejection adds to Pernod’s challenges in India, where it faces two antitrust cases and a tax demand for nearly $250 million for alleged undervaluation of imports.
India accounts for 10% of Pernod’s group sales, making it a significant market for the company.
Pernod has not yet commented on the rejection of its appeal. It remains to be seen how this development will impact the company’s operations and sales in India.
Pernod Ricard is a French multinational company that produces and sells a wide range of alcoholic beverages, including wines, spirits, and liqueurs. It is the world’s second-largest wine and spirits seller after Diageo.
Additional Information:
Pernod’s brands, including Chivas Regal and Absolut vodka, have been unavailable in Delhi for over six months due to this ongoing dispute.
The company has challenged the city’s decision in the Delhi High Court.
The Delhi government has asked the court to quash Pernod’s case, stating that the company has not fulfilled the necessary requirements for a license.