Pernod Ricard Battles Delhi Government Over Liquor Licence Ban

French liquor giant Pernod Ricard is locked in a legal battle with authorities in Delhi after repeated rejections of its liquor licence renewal. The company says the ongoing ban has severely damaged its business operations in the capital for nearly three years. Delhi previously accounted for around 5% of Pernod’s India sales, making it an important market for premium alcohol brands such as Chivas Regal, Absolut Vodka, and Glenlivet.

Delhi authorities have opposed Pernod’s latest court challenge, arguing that granting a licence could pose risks to the regulatory system due to ongoing investigations into alleged irregularities linked to the city’s 2021 liquor policy. India’s financial crime agency has accused the company of colluding with retailers to expand its market share, allegations that Pernod has consistently denied. The company argues that it has never been convicted in any case and should therefore be allowed to continue operating in the capital.

Pernod stated that the prolonged restrictions have left its Delhi business “hopelessly fettered” despite decades of operations across India. The case is expected to be heard by the Delhi High Court, as the company seeks to overturn the licence denial. Industry experts say Delhi remains a crucial market for premium liquor companies due to its large consumer base, tourism sector, and role as a hub for major alcohol brand launches.

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