Delhi Government Rejects Pernod Ricard's Liquor Permit Plea, Citing Restrictive Business Environment

Pernod Ricard Faces Backlash from Indian Regulators

Regulators in India's capital are seeking to strike down Pernod Ricard's fresh court challenge against the rejection of its city liquor license, which the company claims has left its business "hopelessly fettered" for three years, documents show.

The French giant, which counts India as its biggest market globally by volume, has been pleading with authorities since 2023 to restore its Delhi city liquor license. The city typically accounts for about 5% of Pernod's country-wide sales, which stood at $2.86 billion in the year ending March 2025.

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Pernod's pleas have been rejected due to "serious" allegations levelled by India's financial crime agency that the company colluded with retailers in Delhi to illegally boost its market share in 2021. Pernod has denied any wrongdoing, but the ban has left tipplers in the city of over 20 million without access to its popular brands like Chivas Regal, Absolut Vodka, and Glenlivet.

The latest setback came in February, when authorities rejected Pernod's plea for a fourth time, citing ongoing investigations. This prompted the French company to mount a new court challenge at the Delhi High Court in March to overturn the prohibition.

The Delhi government is again pushing back to block Pernod, citing public interest, according to a court filing on April 30. "The state enjoys plenary powers of regulation, control, and restriction in grant of a licence," the Delhi authorities said in the document, adding that giving a licence to Pernod would "expose the regulatory system to risk."

Pernod continues to believe it should be permitted to operate in Delhi and is pursuing appropriate legal avenues. The company has 1,650 employees and 24 production sites in India, and competes with Diageo, Suntory, and William Grant in the country's $65 billion alcohol market.

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India's federal financial crime fighting agency accuses Pernod of supporting some Delhi retailers for licence bids in 2021 in return for ensuring 35% of stocks in their shops would be Pernod's. Last week, India's antitrust regulator launched a new investigation to look into similar allegations. Pernod has repeatedly argued that it is being wrongly penalized and has not been convicted in any case so far.

The ban in Delhi means "three decades of its bona fide conduct and operations across India ... have been washed away," Pernod has previously told the government, court papers show. "Business in the national capital territory of Delhi has been hopelessly fettered."

Amulya Pandit, a senior consultant at Euromonitor specializing in the drinks market, notes that Delhi serves as a major commercial hub, is the venue for top alcohol brand launch events, and gets a lot of tourists who prefer premium spirits.