The Delhi High Court rejected a plea by Pernod Ricard, a French alcohol company, for a wholesale liquor license due to its “criminal background” under the Delhi Excise Act. The court upheld the authorities’ decision to deny the license citing pending prosecution related to an alleged excise policy scam. Pernod Ricard was deemed ineligible for an L-1 license under Section 13(1)(c) of the Delhi Excise Act.
The court clarified that having no criminal background is a prerequisite for the license, not just the absence of convictions. It emphasized that the company’s pending criminal proceedings were a valid reason for disqualification. Despite arguments that only convictions disqualify applicants, the court upheld the rejection of Pernod Ricard’s license applications.
Pernod Ricard was given the option to reapply for a license if the status of its pending criminal proceedings changes. The court’s decision means that the company’s license denial remains in effect. Additionally, the Competition Commission of India has initiated an antitrust investigation into Pernod Ricard over alleged exclusive arrangements with retailers in Delhi.
