Pernod fights for Delhi liquor sale licence after rejection
The French spirits giant asks an Indian court to intervene after local officials reject its licence request citing ongoing investigations
26 April 2023 - 09:20
by Agency Staff
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New Delhi — Pernod Ricard has asked an Indian court to push New Delhi city authorities to grant it a liquor sale licence after local officials rejected the French company’s request, citing certain investigations, a legal filing shows.
In a 332-page court filing at the Delhi High Court on April 23, seen by Reuters, the maker of Chivas Regal and Absolut Vodka argues Delhi authorities made the decision based on criminal allegations against the company, but disregarded that no wrongdoing had been proved yet.
“Merely because there may be certain allegations ... cannot be equated ... as having a criminal background,” Pernod Ricard’s April 23 filing stated. “There is no criminal conviction.”
Pernod’s case will be heard on Wednesday.
Reuters is first to report details of Pernod’s legal challenge, the latest move in a battle the French spirits group has said is causing it “massive losses” as none of its brands have been available in the capital for more than six months.
The company and the Delhi city government did not immediately respond to requests for comment.
India’s federal agencies have accused Pernod of illegally making profits by giving false information to Delhi city authorities in 2021, and violating rules by financially supporting retailers in exchange for stocking more of its brands. Pernod has repeatedly denied wrongdoing.
The Delhi government in its April 13 rejection order of the company’s long-pending licence request said Pernod and its employees “had active involvement in the said criminal conspiracy”.
Pernod has operated for more than 20 years across India, where licences to operate are individually granted by states or in this case, the national capital territory, and mostly have to be renewed every year.
The company counts India as a key market where it has a 17% share and competes with Diageo. While the market share for New Delhi alone is not available, industry executives say the capital serves as a showcase market for premium brands, which makes it critical for any liquor company.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Pernod fights for Delhi liquor sale licence after rejection
The French spirits giant asks an Indian court to intervene after local officials reject its licence request citing ongoing investigations
New Delhi — Pernod Ricard has asked an Indian court to push New Delhi city authorities to grant it a liquor sale licence after local officials rejected the French company’s request, citing certain investigations, a legal filing shows.
In a 332-page court filing at the Delhi High Court on April 23, seen by Reuters, the maker of Chivas Regal and Absolut Vodka argues Delhi authorities made the decision based on criminal allegations against the company, but disregarded that no wrongdoing had been proved yet.
“Merely because there may be certain allegations ... cannot be equated ... as having a criminal background,” Pernod Ricard’s April 23 filing stated. “There is no criminal conviction.”
Pernod’s case will be heard on Wednesday.
Reuters is first to report details of Pernod’s legal challenge, the latest move in a battle the French spirits group has said is causing it “massive losses” as none of its brands have been available in the capital for more than six months.
The company and the Delhi city government did not immediately respond to requests for comment.
India’s federal agencies have accused Pernod of illegally making profits by giving false information to Delhi city authorities in 2021, and violating rules by financially supporting retailers in exchange for stocking more of its brands. Pernod has repeatedly denied wrongdoing.
The Delhi government in its April 13 rejection order of the company’s long-pending licence request said Pernod and its employees “had active involvement in the said criminal conspiracy”.
Pernod has operated for more than 20 years across India, where licences to operate are individually granted by states or in this case, the national capital territory, and mostly have to be renewed every year.
The company counts India as a key market where it has a 17% share and competes with Diageo. While the market share for New Delhi alone is not available, industry executives say the capital serves as a showcase market for premium brands, which makes it critical for any liquor company.
Reuters
New Delhi city refuses to renew Pernod’s liquor licence
Pernod suffers losses in India as Delhi stalls licence
Pernod Ricard accused of making $23m in illegal profits in India
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