India court rejects Pernod’s liquor licence appeal

Pernod Ricard’s liquor licence application has been rejected by New Delhi High Court due to alleged criminal activity within the company.

Pernod Ricard India had its L-1 licence application refused by the New Dehli government’s department of excise on 13 April 2023.

An L-1 licence application is an application for a wholesale vend of Indian liquor licence, which is granted by the excise department.

The drinks giants then submitted a plea to The Delhi High Court to challenge the government’s refusal to renew its licence to sell alcohol in the city, but this was rejected on 18 July.

The application was rejected on the grounds that ongoing investigations were taking place against Pernod Ricard India, an investigation known as the ‘Delhi Excise Policy Scam’.

This involved the arrest of Binoy Babu, Pernod Ricard’s general manager of international brands, and another employee of the company in November 2022, due to their alleged involvement in a money laundering probe related to the government’s liquor policy.

Pernod Ricard has been accused of having had an “active involvement” in this scam, according to the Licensing Authority’s deputy commissioner.

Senior counsels for Pernod Ricard, Mukul Rohatgi and Akhil Sibal, said: “One employee’s arrest, cannot result in the company lacking moral character or having criminal antecedents/background.

“[Pernod Ricard] cannot be equated with a criminal.”

The L-1 licence was applied for on behalf of the following whisky brands: Imperial Blue, Royal Stag, 100 Pipers, Passport and Blender’s Pride.

High Court judge Prathiba M Singh said: “The allegations made therein against [Pernod Ricard] and its employees are serious and cannot be dismissed.

“While it can be argued by the petitioner that it cannot be blamed for any unauthorised conduct of its employees, such an argument has not been placed before this court…the said allegations could not have been brushed aside by the Licensing Authority.

“Moreover, the allegations also reveal that the employees represented themselves to be acting for Pernod Ricard. The allegations go to the root of good corporate governance of a company like [Pernod Ricard].”

Pernod Ricard declined to comment on the case.

In more legal news, earlier this month, it was found that Johnnie Walker owner Diageo could be sued for allegedly devaluing the home of a married couple with the angel’s share vapour emitted from its warehouses in Scotland.

Plus, Buffalo Trace owner Sazerac recently won US$30,000 in damages against a company that sold counterfeit whiskey appearing to be the brand’s W L Weller.