Pernod suffers losses in India as Delhi stalls licence

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Pernod suffers losses in India as Delhi stalls licence
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Top brands such as Chivas, Absolut vodka are not available in Delhi as regulatory challenges mount

Bottles of Chivas Regal. Picture: BENOIT TESSIER/REUTERS

Pernod has operated for more than 20 years in Delhi and across India where licences to operate are granted by states individually, and in most cases have to be renewed every year. Without quantifying the loss, Pernod said that it “has been suffering and continues to suffer significant business losses which are increasing with every passing day”, adding consumers had been deprived of access to its brands.

Pernod has faced regulatory challenges in India for months. It is fighting a near $250m tax demand for allegedly undervaluing imports and faces a federal investigation for alleged violations of Delhi city’s liquor policy in 2021 that has led to the arrest of one executive. Pernod denies any wrongdoing.

In its court filing, Pernod says Delhi authorities in September approved the company's licence application and the company deposited a fee of $276,000.

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