New Delhi, May 29 (IANS) The Delhi High Court on Friday rejected French liquor giant Pernod Ricard’s plea seeking permission to resume the sale of its products in the national capital, dealing a setback to the company in one of its key markets in India.
The company had approached the High Court after Delhi excise authorities dismissed its application for a licence to sell liquor in the city.
Pernod Ricard has been locked in a dispute with Delhi authorities for the past three years over the renewal and grant of licences for its brands, including Absolut vodka and Chivas Regal whisky.
Dismissing the plea, a bench of Justice Purushaindra Kumar Kaurav upheld the stand taken by Delhi authorities, which argued that the ongoing investigations against the company made it ineligible for a licence under the city’s excise rules.
The court observed that the ongoing probe gave Pernod Ricard a “criminal background” under the applicable regulations, making the company ineligible for the grant of a licence in Delhi.
The dispute is linked to the alleged liquor policy irregularities case being investigated by Central agencies.
Authorities have accused Pernod Ricard of colluding with certain Delhi retailers to increase its market share, allegations that the company has consistently denied.
Pernod Ricard had argued before the court that it had not been convicted in any case and therefore should not be denied a licence to operate in Delhi.
India is Pernod Ricard’s largest market globally by volume, where the company recorded sales of around $2.9 billion last year.
Delhi typically contributes nearly 5 per cent of the company’s India sales, making it a strategically important market in the country’s estimated $65 billion alcohol industry.
The company did not immediately respond to requests for comment on the verdict.
pkvd
