Pernod Ricard barred again, Delhi rejects liquor licence for third year

Global liquor behemoth Pernod Ricard, known for premium labels like Chivas Regal, Absolut Vodka, Glenlivet, and 100 Pipers, remains locked out of the lucrative Delhi alcohol market. The city government has once again denied the French major’s appeal to reinstate its liquor sales licence, cancelled in 2022 amid mounting allegations of financial misconduct.

In a damning 16-page order dated May 9, Delhi's Excise Commissioner Sunny K. Singh cited "ongoing criminal proceedings" and the company’s “questionable moral standing” as grounds for rejection, according to reports.

“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.” the order stated, referencing a charge sheet filed by the Enforcement Directorate (ED) as justification enough for denying the licence.

"Mere existence of allegations and investigation justifies administrative caution in licensing matters," city Excise Commissioner Sunny K. Singh wrote in his order.

The rejection leaves Pernod Ricard’s products absent from Delhi’s bars and retail shelves for a third consecutive year. The firm’s troubles began in 2022 when the Delhi government scrapped its controversial 2021-22 excise policy following a Central Bureau of Investigation (CBI) and ED probe into alleged irregularities.

The liquor major's application for an L1 wholesale licence — essential for alcohol distribution in the capital — was first submitted on August 31, 2022, under the reinstated 2020-21 excise framework. It was rejected on procedural grounds, prompting Pernod to pursue relief through the Delhi High Court and higher administrative bodies.

In its latest appeal, the company argued before the financial commissioner that no charge sheet had been filed against it or its employees in the CBI-led excise policy investigation. But that line of defence crumbled under the weight of a separate ED case, which accused the firm of illegally backing retailers with bank guarantees to unfairly inflate its market share — a practice that violates Delhi's liquor regulations.

Delhi represents a critical market for liquor companies in India. Pernod Ricard has previously acknowledged that the national capital alone accounted for nearly 5% of its $3.13 billion sales in India last year — a substantial hit for the firm as it remains sidelined from one of its most profitable territories.

While the latest order denies the company a return to Delhi’s alcohol scene, it grants Pernod the liberty to appeal before the financial commissioner.