Delhi HC rejects Pernod Ricard plea to resume liquor sales in capital
Synopsis
The Delhi High Court has ruled that ongoing investigations give Pernod Ricard a 'criminal background' under excise rules — enough to deny it a licence even without a conviction. For a company that earns $2.9 billion a year from India, losing access to Delhi is a costly legal blow that shows no clear end in sight.
Key Takeaways
The Delhi High Court on 29 May rejected Pernod Ricard's plea to resume liquor sales in the capital.
Justice Purushaindra Kumar Kaurav upheld the excise authorities' stand that ongoing investigations constitute a 'criminal background' under Delhi's excise rules.
The dispute spans three years and is linked to the Delhi liquor policy irregularities case probed by central agencies.
Brands including Absolut vodka and Chivas Regal whisky remain off shelves in Delhi.
India is Pernod Ricard's largest market by volume at approximately $2.9 billion in annual sales; Delhi contributes nearly 5 per cent of that.
The Delhi High Court on Friday, 29 May rejected a plea by French spirits major Pernod Ricard seeking permission to resume the sale of its products in the national capital, delivering a significant setback to the company in one of its most strategically important markets in India. The ruling came after Delhi excise authorities had already dismissed the company's application for a fresh licence.
What the Court Ruled
A bench of Justice Purushaindra Kumar Kaurav upheld the position of Delhi excise authorities, which argued that ongoing investigations against Pernod Ricard rendered it ineligible for a licence under the city's excise regulations. The court observed that the active probe gave the company a 'criminal background' under applicable rules — a threshold that disqualifies it from obtaining a licence regardless of conviction status.
Pernod Ricard had contended that since it had not been convicted in any case, it should not be denied the right to operate in Delhi. The court did not accept that argument.
The Liquor Policy Dispute
The standoff between Pernod Ricard and Delhi authorities stretches back three years, rooted in the alleged liquor policy irregularities case being investigated by central agencies. Authorities have accused the company of colluding with certain Delhi retailers to artificially boost its market share — allegations Pernod Ricard has consistently denied.
The brands at stake include marquee labels such as Absolut vodka and Chivas Regal whisky, both of which remain unavailable for sale in the city pending resolution of the licensing dispute.
What Is at Stake for Pernod Ricard
India is Pernod Ricard's largest market globally by volume, with the company recording sales of approximately $2.9 billion in the country last year. Delhi alone accounts for nearly 5 per cent of its India revenues — a meaningful slice within India's estimated $65 billion alcohol industry.
The loss of Delhi access is therefore not merely symbolic. It compounds pressure on the company at a time when its India business faces regulatory scrutiny across multiple fronts. Notably, this is the latest in a series of legal setbacks the company has encountered in its efforts to restore normal operations in the capital.
What Happens Next
Pernod Ricard did not immediately respond to requests for comment following the verdict. The company may explore further legal remedies, including an appeal before a higher bench or the Supreme Court. The outcome of the central agencies' investigation into the Delhi liquor policy case will likely remain the decisive factor in whether the company can eventually reclaim its licence in the city.
Point of View
And one Pernod Ricard will almost certainly challenge further up the judicial chain. The broader issue is that the Delhi liquor policy case has become a prolonged regulatory siege affecting a company that contributes substantially to India's alcohol industry tax base. Three years without a Delhi licence for Absolut and Chivas Regal is not just a business inconvenience — it signals how deeply the excise policy controversy has entangled legitimate commercial operators alongside those directly accused of wrongdoing. The line between investigation and punishment is getting blurred, and that has implications beyond Pernod Ricard alone.
NationPress
31 Jul 2026
Frequently Asked Questions
Why did the Delhi High Court reject Pernod Ricard's plea?
The court rejected the plea because Delhi excise authorities argued that ongoing investigations against Pernod Ricard gave it a 'criminal background' under the city's excise rules, making it ineligible for a licence. Justice Purushaindra Kumar Kaurav upheld that position on 29 May.
What brands does Pernod Ricard sell that are affected by the Delhi ban?
The affected brands include Absolut vodka and Chivas Regal whisky, among others. Both have been unavailable for sale in Delhi throughout the three-year licensing dispute.
What is the Delhi liquor policy case and how is Pernod Ricard linked?
The Delhi liquor policy case involves alleged irregularities in the now-scrapped Delhi excise policy, being investigated by central agencies. Authorities have accused Pernod Ricard of colluding with certain Delhi retailers to increase its market share — allegations the company has consistently denied.
How important is Delhi to Pernod Ricard's India business?
Delhi accounts for nearly 5 per cent of Pernod Ricard's India revenues. India is the company's largest market globally by volume, with annual sales of approximately $2.9 billion, making Delhi a strategically significant city within that portfolio.
What options does Pernod Ricard have after this ruling?
Pernod Ricard may pursue further legal remedies, including an appeal before a higher bench or the Supreme Court. The company did not immediately comment on the verdict. The outcome of the central agencies' investigation is likely to remain the key determinant of its licensing status in Delhi.
