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Delhi High Court Refuses to Grant L1 Licence to Pernod Ricard

The Delhi High Court has issued a ruling on Friday, declining to intervene in the Delhi government's decision not to grant a liquor licence to Pernod Ricard, a French spirits major. The decision was made by Justice Purushaindra Kumar Kaurav, who rejected a petition filed by Pernod Ricard India Pvt Ltd.

The petition was related to a February order by the financial commissioner, which upheld a decision made by the excise commissioner in May 2025 to reject Pernod Ricard's L-1 licence applications. The rejection was due to a pending money laundering prosecution by the Enforcement Directorate. Pernod Ricard is facing prosecution in a money laundering case related to the 2021 excise policy 'scam'.

Pernod Ricard, the world's second-largest wine and spirits organisation, has a portfolio that comprises over 200 premium brands, including 100 Pipers, Chivas Regal, The Glenlivet, Absolut, Havana Club, and Jacob's Creek. The company also owns Indian brands such as Blenders Pride and Royal Stag. In its petition, Pernod Ricard argued that it cannot be treated as having a "criminal background" for denying an L1 licence under the Delhi Excise Act, as long as there is no conviction.

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The plea further stated that since the trial court discharged all accused persons in the scheduled offence being probed by the CBI in February, prosecution under the related money laundering case has become untenable. Pernod Ricard claimed that it has an unblemished 30-year record and is not a "fly-by-night operator." Despite these arguments, the Delhi High Court refused to intervene in the Delhi government's decision.

Investor Takeaway

Pernod Ricard's appeal against denial of L1 liquor licence has been rejected, which may impact its business operations in India.

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