Delhi High Court Upholds Ban on Pernod Ricard Products as Vodka Giant Battles Dual Legal Crises

New Delhi: Absolut vodka enthusiasts in the national capital are set to wait longer for their preferred brand, after the Delhi High Court on Friday rejected a plea by its manufacturer, French liquor major Pernod Ricard, seeking to resume sales in the city.

The company’s popular brands, including Absolut vodka and Chivas Regal, have remained off shelves in Delhi since 2023 amid its ongoing involvement in the high-profile 2021 excise policy case. The core issue revolves around whether Pernod Ricard, named as an accused in the investigation, should be permitted to operate within the city. Authorities had turned down the firm’s liquor licence application, citing serious allegations from the Directorate of Enforcement (ED) that it colluded with retailers to artificially inflate its market share during the controversial policy period.

In a separate development, Pernod Ricard faces a significant tax dispute with Indian authorities. According to a Reuters report, investigators have determined that the company withheld key details regarding the age and composition of its imported Scotch whisky to understate its true value and evade higher tariffs.

The probe reportedly concluded that Pernod Ricard intentionally complicated its declarations by using new internal malt codenames, making it difficult for customs officials to compare imports with those of competitors. Officials alleged the firm failed to declare the exact composition and age of imported malts to hide their actual value and reduce the applicable 150 per cent tariff on such concentrates, which are later blended into brands like Royal Stag.

This has led to a demand for approximately $314 million (around ₹3,000 crore) in back taxes. With potential penalties, the total liability could exceed $600 million roughly ₹5,725 crore representing a substantial portion of the company’s Indian operations. Pernod Ricard has strongly rejected any suggestion of wrongdoing, stating it remains compliant and is pursuing the matter through appropriate legal channels.

India represents Pernod Ricard’s largest market by volume globally, with Delhi previously contributing about five per cent of its nationwide sales before the restrictions took effect. The company has not issued an immediate comment on the court’s latest decision.

These parallel cases one involving the 2021 liquor policy scrutiny and the other centred on customs valuation — continue to impact the operations of one of the world’s leading spirits producers in a key emerging market. (Word count: 348)