The Delhi High Court declined French liquor giant Pernod Ricard’s request to restart selling its products in the national capital, a setback in one of its key Indian markets. Pernod Ricard had sought court intervention after Delhi excise authorities denied its liquor sales license application. The company has been embroiled in a licensing dispute with Delhi authorities for three years concerning its brands like Absolut vodka and Chivas Regal whisky.
The High Court, led by Justice Purushaindra Kumar Kaurav, supported Delhi authorities’ decision, citing the ongoing investigations against Pernod Ricard as a reason for ineligibility under the city’s excise regulations. The court noted that the investigations labeled Pernod Ricard with a “criminal background,” disqualifying it from obtaining a license in Delhi. The dispute is linked to alleged liquor policy irregularities being probed by Central agencies.
Authorities have accused Pernod Ricard of collaborating with specific Delhi retailers to boost its market share, allegations the company has consistently refuted. Pernod Ricard argued in court that lacking any convictions should not hinder its ability to operate in Delhi. India stands as Pernod Ricard’s largest global market by volume, with sales reaching approximately $2.9 billion last year. Delhi, contributing nearly 5% to the company’s India sales, holds strategic importance in the country’s $65 billion alcohol industry.
The company did not immediately comment on the court’s decision.
