No relief for Pernod Ricard in Delhi excise licence row

The rejection, upheld by the Delhi excise department, cites ongoing criminal proceedings against the company

Pernod Ricard, the global liquor giant behind brands such as Chivas Regal, Absolut Vodka, 100 Pipers, and Glenlivet, will continue to remain absent from Delhi’s retail shelves and bars as the city government has once again rejected the firm’s appeal to a 2022 order cancelling its liquor sales licence.

Bottles of Pernod Ricard's brands are displayed at a bar in Gurugram. (REUTERS)

The rejection, upheld by the Delhi excise department, cites ongoing criminal proceedings against the company and its alleged involvement in economic offences.

According to a 16-page order dated May 9 and accessed by HT, excise commissioner Sunny K Singh stated that the presence of a charge sheet filed by the Enforcement Directorate (ED) against Pernod Ricard India was sufficient to question the company’s “moral standing.” The order noted, “Allowing a company facing allegations of financial misconduct to operate under a state license would not only undermine public trust but also expose state revenue to risk.”

While the order dismisses Pernord Recard’s fresh attempt to get excise license, it also grants the company the liberty to appeal the decision before the financial commissioner.

Pernod Ricard’s brands have been unavailable in the Capital since late 2022, after the Delhi government scrapped its 2021-22 excise policy amid a probe into alleged irregularities. The company’s application for an L1 wholesale license — mandatory for liquor distribution in Delhi — was first filed on August 31, 2022, under the reinstated 2020-21 excise policy.

After its application was initially dismissed for non-fulfilment of provisions, the firm approached the Delhi high court and later appealed to higher excise authorities. In August 2024, it told the financial commissioner that no charge sheet had been filed against the company or its employees in the Central Bureau of Investigation (CBI) probe related to the excise policy case.

In March 2025, Delhi’s financial commissioner had held that the company could not be penalised before legal proceedings had been completed, thus requiring authorities to reconsider Pernod’s application.

In latest its appeal, Pernod Ricard argued that the mere pendency of proceedings, without conviction or even framed charges, should not disqualify it from obtaining a license. It pointed out that the employee initially named in the CBI FIR was not included in any charge sheets. However, the excise commissioner’s order concluded that ED’s charge sheet, which pertains to serious economic offences, was reason enough to deny the license.

“The decision to reject the license application stands firmly grounded in legal jurisprudence,” the order said. “The chargesheet by ED represents serious economic offenses which justifies the state’s preventive measures to safeguard revenue interests.”

“This order pertains to our earlier FY22-23 license application. While we do not agree with it, our main focus is on securing a fresh license for the current financial year. We will continue to pursue all legal avenues available to us,” a Pernod Ricard spokesperson said.

Industry experts voiced concern over the prolonged absence of Pernod Ricard’s products. “Pernod Ricard has an impressive portfolio of brands in India, and their prolonged absence from the Delhi market deprives consumers of familiar choices,” said Vinod Giri, former director general of the Confederation of Indian Alcoholic Beverage Companies (CIABC). “Law will take its course, but from a consumer’s point of view, an early return of these brands would be welcome.”

In order to challenge the latest order, Pernod Ricard may again appeal to the financial commissioner.