Pernod Ricard (PERP.PA) has sought an Indian court to force New Delhi municipal authorities to award it a liquor-selling license after local officials denied its request, citing investigations, according to a legal filing.
In a 332-page court petition at the Delhi High Court on April 23, the Chivas Regal and Absolut Vodka manufacturer claims Delhi officials made the decision based on criminal charges against the corporation but ignored the fact that no crime had been proven.
“Merely because there may be certain allegations… cannot be equated with a criminal or be considered as having a criminal background,” Pernod Ricard’s April 23 petition claimed. “There is no criminal conviction.”
Wednesday is Pernod’s case.
Reuters first reported Pernod’s legal action. The French spirits giant has alleged to suffer “massive losses” since none of its brands have been sold in the city for more than six months.
The firm and Delhi municipal authorities did not immediately react to inquiries.
India’s federal officials accused Pernod of unlawfully gaining profits by presenting misleading information to Delhi municipal authorities in 2021 and financially encouraging merchants to stock more of its products. Pernod constantly denies guilt.
The Delhi government rejected Pernod’s long-pending licensing request on April 13, saying the corporation and its workers “had active involvement in the criminal conspiracy.”
Pernod has operated in India for almost 20 years, where state or national capital territory licenses must be renewed annually.
The company’s 17% stake in India competes with Diageo (DGE.L). Industry insiders believe New Delhi is crucial for liquor companies because it showcases premium brands.
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