The Delhi High Court on Friday rejected a plea filed by French liquor giant Pernod Ricard is seeking permission to resume the sale of its products in the national capital, dealing another setback to the company amid ongoing legal and regulatory troubles in India. Pernod Ricard’s popular brands, including Absolut Vodka and Chivas Regal, have remained unavailable in Delhi since 2023 following the company’s involvement in the investigation related to the now-scrapped 2021 Delhi excise policy. The dispute centers on whether a company named as an accused in the case can continue commercial operations in the city.

Delhi authorities had earlier denied renewal of Pernod Ricard’s liquor license application, citing serious allegations made by the Directorate of Enforcement (ED). Investigators have accused the company of colluding with retailers to illegally increase its market share under the controversial excise policy introduced in 2021. The policy itself became the subject of intense political and legal scrutiny, eventually leading to multiple investigations by central agencies into alleged corruption and irregularities involving liquor manufacturers, distributors, and government officials.

Apart from the excise policy case, Pernod Ricard is also facing a separate legal battle involving allegations of customs duty evasion linked to its Scotch whisky imports. According to a Reuters report citing investigation documents and court submissions, Indian authorities have concluded that the company allegedly concealed the age and composition of imported Scotch whisky concentrates to reduce the declared value of shipments and pay lower tariffs. Investigators reportedly claimed the company introduced internal malt codenames that made it difficult for customs officials to compare its imports with competitors and determine their actual value.

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Authorities have demanded approximately $314 million, or nearly ₹3,000 crore, in back taxes from Pernod Ricard over the alleged undervaluation of Scotch concentrate imports. The concentrates are later blended with water, caramel, and other ingredients to manufacture whisky brands such as Royal Stag. Investigators alleged that the imports were undervalued by nearly 67.5 percent, significantly lowering the impact of India’s 150 percent tariff on imported liquor products. Court documents cited in the report suggest that if penalties are imposed under existing laws, the total liability could exceed $600 million, equivalent to nearly ₹5,725 crore.

Pernod Ricard has strongly denied all allegations and maintained that it has complied fully with Indian regulations. In a statement, the company said it rejects any suggestion of wrongdoing and is pursuing legal remedies through appropriate channels. The firm has also argued that investigators failed to provide access to crucial pricing data used during the customs investigation. Reuters reported that although warnings regarding the tax dispute had first surfaced in 2022, several newly reviewed documents filed in court revealed additional details about the ongoing investigation and the scale of the allegations against the company.

India remains Pernod Ricard’s largest market globally by volume, making the ongoing restrictions and legal disputes particularly significant for the company’s business operations. Before the Delhi sales suspension, the national capital reportedly accounted for nearly five percent of the company’s India-wide sales. Industry observers believe the outcome of both the Delhi excise case and the customs dispute could have long-term implications for foreign liquor companies operating in India, especially amid increasing regulatory scrutiny and tighter enforcement in the alcohol sector.

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