NEW DELHI: Regulators in India's capital are seeking to strike down French giant Pernod Ricard's fresh court challenge against rejection of its city liquor licence, which the company says has left its business "hopelessly fettered" for three years, documents show.
Pernod, which counts India as its biggest market globally by volume, has been unsuccessfully pleading with authorities since 2023 to restore its Delhi city liquor license. The city typically used to account for about 5% of Pernod's country-wide sales, which stood at $2.86 billion in the year ending March 2025.
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Officials have rejected the pleas citing "serious" allegations levelled by India's financial crime agency that Pernod colluded with retailers in Delhi to illegally boost its market share in 2021.
Pernod has denied any wrongdoing but the ban means tipplers in the city of more than 20 million have remained without access to its popular brands like Chivas Regal, Absolut Vodka and Glenlivet.
The latest setback came in February, when authorities rejected Pernod's plea for a fourth time, citing ongoing investigations, prompting the French company to mount a new court challenge at the Delhi High Court in March to overturn the prohibition - details Reuters is reporting for the first time.
The court is scheduled to hear the case on Thursday.
The Delhi government is again pushing back to block Pernod, citing public interest, according to a court filing on April 30, seen by Reuters.
"The state enjoys plenary powers of regulation, control and restriction in grant of a licence," the Delhi authorities said in the document, adding that giving a licence to Pernod would "expose the regulatory system to risk."
Pernod said in a statement to Reuters "it continues to believe it should be permitted to operate in Delhi" and is pursuing appropriate legal avenues.
The Delhi government did not respond to queries from Reuters.
BUSINESS 'HOPELESSLY FETTERED'
India's federal financial crime fighting agency accuses Pernod of supporting some Delhi retailers for licence bids in 2021 in return for ensuring 35% of stocks in their shops would be Pernod's. Last week, India's antitrust regulator launched a new investigation to look into similar allegations.
Pernod has repeatedly argued its being wrongly penalised, and it has not been convicted in any case so far.
The ban in Delhi means "three decades of its bona fide conduct and operations across India ... have been washed away," Pernod has previously told the government, court papers show.
"Business in the national capital territory of Delhi has been hopelessly fettered."
Pernod competes with Diageo, Suntory and William Grant in India's $65 billion alcohol market. It has 1,650 employees and 24 production sites.
"Delhi serves as a major commercial hub, is the venue for top alcohol brand launch events, and gets a lot of tourists who prefer premium spirits," said Amulya Pandit, a senior consultant at Euromonitor specializing in the drinks market.
