New Delhi city refuses to renew Pernod’s liquor sale licence, cites probes

New Delhi rejected Pernod Ricard’s (PERP.PA) liquor selling license renewal application, citing ongoing investigations into the firm.

The city’s April 13 order, seen by Reuters and not previously reported, said Pernod’s licence application and “considerable documents” from Indian investigative agencies were reviewed.

It detailed many of the agencies’ charges, including that Pernod illegally gained profits by providing incorrect price information and financially backed shops to stock more of its brands.

The 12-page judgement noted, “Pernod Ricard India Private Limited and its employees had active involvement in the said criminal conspiracy.”

Chivas Regal and Absolut vodka, which denies wrongdoing, did not comment on Tuesday.

In March, Pernod informed a Delhi court that business had been “suffering massive losses” due to its delayed license. Judges gave the city two weeks to decide.

Pernod might appeal to senior Delhi officials.

The company’s 17% share in India competes with Diageo (DGE.L). New Delhi is an urban tourist destination and a showcase market for luxury brands, making it crucial for any liquor company.

Pernod also faces a $250 million tax demand for undervaluing imports in India.

Pernod has operated in India for almost 20 years under state or national capital territory licenses that must be renewed annually.