Court declines to entertain Absolut & Glenlivet-seller Pernod appeal to renew liquor sale licence in Delhi
Pernod Ricard's plea seeking a renewal of its liquor sale licence in New Delhi, marking the latest legal setback in the French giant's attempt to restart sales in the city, news agency Reuters reported on Tuesday.India's federal financial crime agency Enforcement Directorate has accused the company of illegally making profits by giving false information to Delhi city authorities in 2021, and violating rules by financially supporting retailers in exchange for stocking more of its brands. Pernod has repeatedly denied wrongdoing.
The distiller that sells Royal Salute, Glenlivet and Absolut counts India among one of its three “must-win” countries globally, along with the US and China. The growing middle class, which can afford premium-and-above, is about 150 million, and nearly 17 million people will be added as they attain the legal drinking age annually for the next three to five years.
«In September, when the new policy was reversed, the Delhi excise department had verbally informed these parties that their applications have been refused and they won't be allowed to sell liquor in the capital city. On 31 March, the Delhi High court directed the excise department to give a written order on Pernod's renewal application status in the next two weeks, which has now been passed,» said an official in the Delhi Excise department in a statement in April.
In November 2021, the Delhi government decided to exit the liquor vending business and handed it over to private companies. However, last year, it reverted to the old policy.
According to the ED, the policy promoted cartel formations through back doors, awarded exorbitant wholesale profit margins at 12% and huge retail profit margins of 185%. Earlier this year, the Enforcement
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