Global liquor conglomerate Pernod Ricard has once again been barred from re-entering the Delhi alcohol market, with city authorities rejecting the French firm’s appeal for a wholesale licence over continuing allegations of financial misconduct.
The latest blow to the maker of popular labels like Chivas Regal, Absolut Vodka, and Glenlivet comes via a 16-page order issued on May 9 by Delhi’s Excise Commissioner Sunny K. Singh. The order cites “serious economic offences” and ongoing criminal investigations as justification for the continued denial.
“Licensing a company currently under criminal investigation would compromise public confidence and pose a risk to state revenues,” the order stated, adding that the mere presence of unresolved charges warrants caution in administrative decisions.
This marks the third consecutive rejection for Pernod Ricard, which has been out of the Delhi market since 2022 following the scrapping of the city’s contentious 2021-22 excise policy. That move triggered investigations by the Central Bureau of Investigation (CBI) and Enforcement Directorate (ED), targeting irregularities in the liquor licensing regime.
Although Pernod Ricard has not been formally charged by the CBI in connection with the excise probe, a separate ED case accuses the company of unlawfully supporting local retailers through bank guarantees—allegedly helping it gain unfair market dominance. Such practices contravene Delhi’s liquor licensing rules.
Adding to the company’s troubles, an internal probe reportedly commissioned by Pernod Ricard itself found evidence of rule violations by its senior executives, despite the firm’s public denials of wrongdoing.
Delhi, which accounts for an estimated 5% of Pernod Ricard’s India sales, roughly $156 million of its $3.13 billion annual revenue, is a significant market for liquor companies. The continued ban on its operations in the capital has thus dealt a substantial commercial setback to the French spirits major.
Despite the Delhi Excise Department’s firm stance, an Indian appellate authority had earlier recommended reconsideration, noting the absence of a court conviction. But the city administration remained unmoved. “Courts have established that governments are entitled to exercise discretion when moral integrity is in question,” the May 9 order stated.
In a statement, Pernod Ricard said it disagreed with the decision and remains committed to pursuing “all legal avenues” to regain access to the Delhi market. The company also confirmed that its immediate priority is to secure a new wholesale licence for the ongoing financial year.
The firm’s regulatory and legal challenges are likely to persist as investigations continue, keeping one of India’s most lucrative liquor markets out of reach for one of the world’s largest alcohol producers.
(With inputs from Reuters)