Pernod Ricard internal probe reveals top bosses in India violated law in deals with Delhi retailers
Pernod Ricard concluded that top executives at its India business violated the law by colluding with alcohol retailers in New Delhi, according to a document seen by Reuters, even as the French giant's representatives denied wrongdoing in court and publicly.
PRI told Reuters in January and February 2023 that it «strongly» denies the Enforcement Directorate allegations, calling them «factually incorrect.» As recently as Sept. 4, lawyers for Benoy Babu, a PRI executive named in Shardul Amarchand Mangaldas's report, asked the Delhi High Court to quash the case against him. They said allegations against Babu, who was briefly jailed pending trial last year, were «false and baseless», and authorities were relying on «hearsay evidence».
The court has yet to rule on Babu's non-public filing, which was seen by Reuters. He didn't respond to questions from the news agency.
India is a key market for Pernod. In 2023, it had a 16% share in the country's spirits market as measured by sales volume, according to Euromonitor. But challenges abound: Pernod is contesting a $250 million federal tax demand for allegedly undervaluing imports and is facing two antitrust cases, one related to its alleged collusion with retailers in New Delhi.
The loosening of liquor store ownership policies in 2021 was potentially transformative for Pernod, with one internal PRI presentation submitted by authorities to the court stating the company wanted to «take control of retail shops» in New Delhi.
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