‘$314 million tax hit, Delhi ban’: HC denies relief to Absolut Vodka maker, calls firm ‘ineligible’ for liquor licence

Pernod Ricard, the French liquor giant behind Absolut Vodka and Chivas Regal, suffered another setback in India on Friday after the Delhi High Court rejected its plea to resume sales in the national capital. The ruling prolongs a ban that has kept some of the company’s most recognisable brands off Delhi shelves since 2023 and intensifies pressure on a business already facing multiple investigations and a $314 million tax dispute.

The case has become one of the most closely watched corporate battles in India’s liquor industry, not least because Delhi once accounted for nearly five per cent of Pernod Ricard’s nationwide sales. India, meanwhile, remains the company’s largest market globally by volume, according to Reuters.

ALSO READ: Trump on US dollar bill? Appointees push $250 banknote proposal ahead of 250th anniversary, report says

Court Rejects Plea Amid Liquor Policy Investigation

The dispute stems from the now-scrapped 2021 Delhi liquor policy, which has triggered a wide-ranging investigation by federal agencies. Authorities allege that Pernod Ricard colluded with retailers to increase market share in the capital, accusations the company has consistently denied. Delhi authorities have repeatedly refused to renew the company’s licence on the grounds that it is an accused party in the ongoing probe. Pernod Ricard argued before the court that it had not been convicted of any wrongdoing and therefore should not be barred from operating.

However, the Delhi High Court sided with city authorities, with the judge observing that the company was “ineligible” for a licence because of the continuing investigation. The ruling effectively keeps Pernod Ricard out of one of India’s most important liquor markets for a third consecutive year. In earlier submissions cited by Reuters, the company argued that repeated denials had left its business “hopelessly fettered” in New Delhi.

ALSO READ: Norway to move under France’s nuclear umbrella: 5 reasons Europe’s defence calculus is shifting

Tax Dispute Adds to Pressure

The legal setback comes days after Reuters reported that Indian investigators had accused Pernod Ricard of understating the value of Scotch whisky imports to reduce tariff payments. Authorities allege the company concealed details relating to the age and composition of imported whisky, claims that have led to a demand for $314 million in back taxes.

According to a government filing dated January 24 and cited by Reuters on March 27, investigators alleged that Pernod Ricard did not declare “the true description of their imported malts (i.e. its exact composition and age) with the intention to hide the actual value of the imported goods and to avoid comparison”.

Pernod Ricard has not publicly commented on Friday’s court ruling. Formed in 1975 through the merger of French spirits makers Pernod and Ricard, the group today controls a vast premium portfolio spanning Chivas Regal, The Glenlivet, Jameson, Ballantine’s, Absolut Vodka and Beefeater gin. In India, it also owns popular Seagram’s whisky labels including Royal Stag and Blenders Pride. For now, however, Delhi consumers hoping to buy Absolut Vodka or Chivas Regal legally in the capital will have to wait longer.