Absolut Vodka Maker Faces Delhi Ban, ₹3,000 Crore Financial Penalty

The Delhi High Court on Friday rejected a plea filed by French liquor giant Pernod Ricard seeking permission to resume sales of its products in Delhi, dealing another setback to the company as it continues to face scrutiny in connection with the capital’s controversial 2021 excise policy case. The ruling means the company’s premium liquor brands, including Absolut Vodka and Chivas Regal, are unlikely to return to the Delhi market in the near future.

Pernod Ricard’s products have remained unavailable in Delhi since 2023 after the company was named as an accused in investigations linked to the now-scrapped liquor policy introduced by the Delhi government in 2021. Authorities have been examining allegations of irregularities in the implementation of the policy, which triggered multiple investigations involving politicians, bureaucrats, and liquor firms.

The legal dispute before the High Court centred on whether a company facing criminal investigation should be allowed to continue commercial operations in the national capital. With the court declining relief, the company’s efforts to restore distribution and retail presence in one of India’s largest liquor markets have suffered a major setback.

Also Read: Delhi High Court Rejects Pernod Ricard Plea to Resume Sales Amid Rs 3,000 Crore Tax Dispute

Separately, Pernod Ricard is also facing allegations related to customs and taxation practices involving imported Scotch whisky. According to a Reuters report, investigators concluded that the company allegedly concealed the age and composition details of certain whisky imports in order to undervalue shipments and reduce tariff payments. The report cited official documents linked to the investigation.

The allegations have resulted in a significant financial dispute between the company and Indian authorities. Reuters reported that Pernod Ricard has been asked to pay approximately $314 million, or nearly ₹3,000 crore, in back taxes and related dues arising from the alleged underpayment of import duties. The company has reportedly contested the findings, leading to an ongoing legal and regulatory battle.

The twin controversies involving the Delhi excise policy case and tax-related allegations have placed Pernod Ricard under sustained scrutiny in India, one of the world’s fastest-growing alcohol markets. The developments also highlight the increasing regulatory and legal pressures faced by multinational liquor companies operating in the country, particularly in sectors involving state-controlled licensing, taxation, and distribution frameworks.

Also Read: Delhi High Court Rejects Pernod Ricard Plea to Resume Sales Amid Rs 3,000 Crore Tax Dispute