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Wednesday, August 25, 1999

UB moves court against ban on Kingfisher sale in Delhi 

PRESS TRUST OF INDIA  
New Delhi, Aug 24: Vijay Mallya's United Breweries Ltd (UB) has filed a petition in the Delhi high court against the Excise department for banning sale of its international beer brand "Kingfisher" in the capital.

"We have filed a petition in the Delhi high court against the Excise department as it did not renew the licence of Kingfisher beer in Delhi saying that the brand was advertised on various private television channels," divisional vice-president (sales & marketing), United Breweries Deepak Chaudhuri said.

He said the Excise deparment, which is in-charge of granting licences for various alcholic drinks, has not renewed the licence from July onwards, saying that Kingfisher was advertised on TV, in violation of the excise laws governing the capital.

Refuting the excise department's contention, chaudhurisaid there were other international alcholic drinks available in Delhi. "Kighfisher is also an international brand and all advertisements are beamed from outside India aimed at other countries overwhich the company has no control," he said.

The case is scheduled to come up for hearing on September 2, company officials said.

Chaudhuri said at the time of renewal of the licence, the Excise department had asked for an undertaking that the brand should not be advertised in Delhi, which the company refused to give.

"How can we give an undertaking for an advertisement which is beamed from outside the country," he said adding that the brand is advertised for south-east Asia and Middle-East countries, where Kingfisher has been pegged against other international brands.

He said with the ban both the company and the Excise department were losing money.

According to the company, UB group last year had contributed Rs 14.62 crore excise to the government from Delhi, out of which Kingfisher contributed Rs 7.10 crore.

Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.


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