Indian Appeals Authority orders New Delhi to reconsider Pernod Ricard’s liquor license application 

INDIA – An Indian appeals authority has ruled that New Delhi must reconsider its refusal to grant a liquor license to France’s Pernod Ricard, rejecting the justification that the company had a criminal background, Reuters reported. 

India is a key market for Pernod Ricard, accounting for 10 percent of its global sales. Its business in New Delhi, a major urban tourist hub, previously contributed 5 percent of its revenue in the country.  

However, retail sales of Pernod’s brands, including Chivas Regal, have been banned in the capital since 2022 due to repeated license denials by local authorities. The refusals were based on ongoing investigations into alleged violations of liquor regulations. 

In a ruling by New Delhi’s Financial Commissioner’s court, authorities were directed to re-evaluate Pernod Ricard’s application, stating that penalties cannot be imposed before legal proceedings are concluded. 

“There has to be a conviction beyond doubt by a court of law before any adverse opinion or action can be taken,” said Financial Commissioner Chetan B. Sanghi in the 29-page decision dated February 13.  

The ruling, reported by Reuters for the first time, urged the Commissioner of Excise to revisit the decision. 

Following the ruling, Pernod Ricard expressed optimism, stating it was committed to working with authorities to “secure our license and resume operations in Delhi at the earliest.” 

“We now look forward to a timely and favorable resolution,” the company said in a statement. 

India’s financial crime-fighting agency accuses Pernod of indirectly investing in city retailers to boost its market share in 2021. However, the company has denied any wrongdoing.  

An internal investigation ordered by Pernod Ricard reportedly found that top executives colluded with retailers, despite its representatives publicly denying the allegations in court. 

Beyond the liquor license dispute, Pernod Ricard faces multiple regulatory challenges in India, including two antitrust cases and a US$250 million tax demand for allegedly undervaluing imports. 

 Meanwhile, the Absolut Vodka maker scaled back its full-year outlook following a 25 percent sales drop in China during the first half of its 2025 financial year.  

Pernod now expects a low-single-digit decline in organic sales, revising its earlier forecast of a return to growth. 

The decline has been attributed to weakened consumer demand, a challenging macroeconomic environment, and sharp declines in Martell Cognac and Royal Salute Scotch whisky sales in China. 

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