Why Did Delhi High Court Punish Absolut Vodka Maker Pernod Ricard? Explained

The Delhi High Court has held that Pernod Ricard is currently “ineligible” for a liquor licence in the capital, citing ongoing criminal and regulatory investigations. The French company, behind brands such as Absolut Vodka and Chivas Regal, had approached the court seeking permission to resume selling beverages in Delhi.

Pernod Ricard’s Delhi operations have stopped since 2023, after allegations linked the company to the 2021 excise policy case. Officials then rejected repeated licence applications, relying on Enforcement Directorate claims that Pernod Ricard worked with certain retailers to improperly grow its presence in the city’s alcohol market.

Pernod Ricard Delhi High Court case and customs duty dispute

The High Court said a fresh licence cannot be granted while related investigations remain active, and therefore declared the company “ineligible” under the current policy framework. At the same time, according to a Reuters report, Pernod Ricard is also facing a separate customs duty dispute over imported Scotch whisky.

Investigators in that tax case alleged that Pernod Ricard misrepresented details such as age and blend composition for imported Scotch consignments. The aim, officials claimed, was to qualify for lower customs duties. Authorities have reportedly demanded around $314 million, roughly Rs 3,000 crore, as unpaid taxes.

Pernod Ricard Delhi High Court case, investigation findings and market impact

Along with potential tax arrears, penalties could push Pernod Ricard’s total exposure beyond Rs 5,700 crore. India is the company’s largest market by sales volume worldwide. Before the Delhi exit, the national capital alone accounted for about five per cent of Pernod Ricard’s business in the country.

Reuters first reported on the customs dispute in 2022. More details later surfaced through investigation records and court documents placed before the Delhi High Court. Pernod Ricard has argued that officials did not share crucial pricing data that investigators relied on while assessing the alleged customs violations.

According to those records, investigators concluded in September 2025 that Pernod Ricard introduced internal code-based descriptions for imported malt shipments. This practice reportedly made it harder for customs officers to compare the company’s imports with rival brands. Agencies also alleged that the firm withheld accurate information on age and composition to reduce declared value and avoid deeper checks.

The High Court ruling keeps Pernod Ricard out of the Delhi liquor market while both the excise policy case and the customs duty probe proceed. The decision leaves an important sales region closed for the company, as investigators continue examining alleged irregularities in licensing, pricing and import declarations.