The authorities in New Delhi have denied Pernod Ricard’s most recent attempt to secure a permit to sell alcohol in the Indian capital, citing ongoing investigations into possible infractions of the city’s liquor code, as evidenced by an excise department order.
The decision exacerbates Pernod’s problems in India, where the French beverage company is battling two antitrust charges and a tax demand for around $250 million related to purported import undervaluation.
Since late 2022, Pernod’s brands—such as Absolut and Chivas Regal vodka—have not been accessible in the city due to the denial of a prior licensing application in April of last year.
The business has stated that it is qualified for a licence and denied any misconduct.
With a 17 percent market share and competition from rival Diageo, India is a significant market for Pernod. For any spirits company, New Delhi is essential because it’s a major metropolitan tourist destination and a showcase market for luxury goods.
However, New Delhi Excise Commissioner Krishna Mohan Uppu denied Pernod’s appeal against the denial of its prior licence application in a 24-page order on Tuesday that was not made public but was reviewed by Reuters. The order also mentioned the company’s ongoing investigations.
A request for comment from Pernod was not answered.
According to Tuesday’s ruling, Pernod’s appeal contended that the business had complied with all licensing requirements and that the city was interfering with ongoing criminal investigations.
The order referenced an ongoing investigation by the Federal Financial Crime Agency of India, which has accused Pernod of financially helping merchants in exchange for their stocking more of its brands in 2021 and of benefitting illegally by providing false information to Delhi officials.
Pernod has a history of denying misconduct.
Ten percent of Pernod’s group sales come from India. In the past, the Delhi operation has contributed 5% of Pernod’s Indian revenues, according to CFO Helene de Tissot’s statement from the previous year.