Pernod Ricard faces third licence denial in New Delhi

French liquor giant Pernod Ricard has once again been denied an alcohol licence in New Delhi. Authorities cite ongoing investigations and concerns over “moral probity” as reasons for the repeated refusal. The post Pernod Ricard faces third licence denial in New Delhi appeared first on The Drinks Business.

May 16, 2025 - 10:42

Pernod Ricard faces third licence denial in New Delhi

French liquor giant Pernod Ricard has once again been denied an alcohol licence in New Delhi. Authorities cite ongoing investigations and concerns over “moral probity” as reasons for the repeated refusal. City life - Main Bazar, Paharganj, New Delhi, India stock photo. French liquor giant Pernod Ricard has once again been denied an alcohol licence in New Delhi. Authorities cite ongoing investigations and concerns over “moral probity” as reasons for the repeated refusal.

The local authorities in New Delhi have yet again rejected Pernod Ricard’s renewed request for a licence to sell alcohol in the region. This third refusal relates to the ongoing (and much delayed) investigation into whether the French group broke the local licensing law by underwriting loans to independent retailers during the brief period from 2000 to 2002 when New Delhi abandoned its state monopoly. That has since been restored. Pernod Ricard has always strenuously denied the allegations, saying it complies with the law in all countries in which it operates. In February, a Delhi appeals authority said Pernod's case merited a review as "there has to be a conviction beyond doubt by a court of law before any adverse opinion or action can be taken"

Authorities cite serious offences

New Delhi, however, holds that the allegations were about "serious economic offences, which justify the state's preventive measures." The licensing authority has thus rejected Pernod's request again, reportedly saying in an unpublished order that the courts had upheld that local governments have "broad discretion to deny it (a licence) to entities that lack moral probity". "Mere existence of allegations and investigation justifies administrative caution in licensing matters," City Excise commissioner Sunny K. Singh wrote in his unpublished order seen by Reuters.

Pernod Ricard vows to keep fighting

Pernod Ricard said it did not agree with the decision, adding its "main focus is on securing a fresh licence for the current financial year." "We will continue to pursue all legal avenues available to us," it added. India is what Pernod Ricard chairman and CEO Alexandre Ricard calls a “must-win” market and is vying with China to be the French company’s second largest after the USA. Previously, it was said that the new Delhi region accounted for about 5% of its business in India before the removal of the licence. Last year, its sales to India were US$3.13 billion.