Pernod Ricard, the French company, is seeking the intervention of an Indian court to obtain a liquor sale license from the New Delhi city authorities. The company’s request was previously turned down by local officials, who cited ongoing investigations as the reason for the rejection, according to a legal filing.
On April 23, Pernod Ricard submitted a 332-page court filing to the Delhi high court. The filing states that the French company, known for its production of high-end alcohol brands like Chivas Regal and Absolut Vodka, claims that the New Delhi city authorities denied its request for a liquor sale license based on allegations of criminal activity without sufficient proof of wrongdoing.
“Merely because there may be certain allegations … cannot be equated with a criminal or be considered as having a criminal background,” Pernod Ricard’s April 23 filing stated. “There is no criminal conviction.”
The case brought by Pernod Ricard is scheduled to be heard on Wednesday.
Pernod Ricard’s legal challenge, the latest step in the ongoing dispute, has caused the French spirits company “massive losses” as none of its brands have been available in the capital for over six months. This is the first time details of Pernod’s legal action have been reported.
Requests for comments from the Delhi city government and Pernod Ricard went unanswered at the time of reporting.
In 2021, Indian federal agencies accused Pernod Ricard of violating rules by providing false information to Delhi city authorities and supporting retailers financially in exchange for stocking more of its brands, resulting in illegal profits. Pernod Ricard has refuted the allegations of wrongdoing on multiple occasions.
The Delhi government, in its rejection order dated April 13, stated that Pernod Ricard and its employees had played an active role in a criminal conspiracy, while turning down the company’s longstanding license application.
For over two decades, Pernod Ricard has been operating in India, where licenses to conduct business are granted by individual states or, in the case of the national capital territory, at a national level. These licenses usually require annual renewals.
With a 17 percent share, India is an important market for Pernod Ricard, where it competes against Diageo. Although the specific market share of New Delhi is not disclosed, industry experts claim that the capital serves as a crucial showcase for premium brands, making it a crucial market for any liquor company.