Why is Pernod Ricard Still Barred from Re-entering Delhi?

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Why is Pernod Ricard Still Barred from Re-entering Delhi?

Synopsis

Pernod Ricard faces ongoing challenges as its attempts to re-enter the Delhi market are thwarted by criminal allegations and regulatory concerns. The Excise Commissioner’s latest decision highlights the importance of moral integrity in licensing. Can the liquor giant overcome these obstacles?

Key Takeaways

  • Pernod Ricard is currently barred from the Delhi market due to ongoing legal issues.
  • The Excise Commissioner's order emphasizes the importance of moral character in licensing.
  • This marks the third rejection in a row for the company regarding its liquor license.
  • The company plans to pursue legal avenues to regain its market presence.
  • Public trust and regulatory discretion are key factors in licensing decisions.

New Delhi, May 19 (NationPress) - The global liquor giant Pernod Ricard remains prohibited from re-entering the Delhi market due to a recent directive from the city’s Excise Commissioner, Sunny K. Singh. The order emphasizes that the "mere pendency of criminal proceedings, particularly involving allegations of economic crimes, justifies the exercise of caution and the denial of license privileges".

In a detailed 16-page ruling, the Excise Department rejected the French company’s plea for liquor license renewal, citing "serious economic offences" and ongoing criminal probes as reasons for the continued refusal.

The Commissioner highlighted that the Excise Department's actions are in accordance with principles of public trust, moral integrity, revenue protection, and regulatory discretion as outlined in the Delhi Excise Act, 2009. This decision marks another setback for the manufacturer of renowned brands such as Chivas Regal, Absolut Vodka, and Glenlivet.

This incident marks the third consecutive rejection for Pernod Ricard. The company has been absent from the crucial Delhi market since 2022, following the annulment of the city’s controversial 2021-22 excise policy under the then Aam Aadmi Party (AAP) administration, which sparked investigations by the Central Bureau of Investigation (CBI) and Enforcement Directorate (ED).

The ED accused the French liquor firm of unfairly gaining market dominance by illegally aiding local retailers through bank guarantees. However, the CBI has not formally charged Pernod Ricard in relation to the excise investigation.

According to the order from the Delhi Excise Commissioner, which has been reviewed by IANS, both the Supreme Court and High Court have affirmed that licensing authorities possess the discretion to evaluate the moral character of applicants, taking into account pending criminal charges when relevant.

"The final decision must be based on a thorough evaluation of the individual's conduct and the nature of the alleged offence. In light of the above principles and doctrines, the decision to deny Pernod Ricard India Private Limited's L1 license application as indicated in the order dated 13.04.2023 by the Deputy Commissioner (Excise/Licensing Authority) is firmly rooted in legal jurisprudence and thus upheld," the order states.

A representative for Pernod Ricard commented: "This order concerns our previous FY22-23 license application."

"While we do not concur with this decision, our primary objective is to secure a new license for the ongoing Financial Year. We will explore all legal options available to us and remain confident in the strength of our legal standing, eager to resume operations in Delhi at the earliest," the spokesperson added.

Point of View

I acknowledge the complexities surrounding Pernod Ricard's licensing issues in Delhi. The enforcement of moral integrity and economic accountability in the licensing process is crucial for maintaining public trust. While the company seeks to navigate this legal landscape, it is essential to uphold regulatory standards that protect consumers and ensure fair market practices.
NationPress
23/09/2025

Frequently Asked Questions

Why is Pernod Ricard barred from the Delhi market?
Pernod Ricard is barred due to ongoing criminal proceedings and allegations of economic offences, as highlighted by the Delhi Excise Commissioner.
What are the implications of the Excise Commissioner's order?
The order emphasizes the need for moral integrity and public trust in licensing decisions, impacting Pernod Ricard's ability to operate in the region.
Has Pernod Ricard faced rejections before?
Yes, this is the third consecutive rejection for Pernod Ricard concerning its liquor license renewal.
What legal avenues are available to Pernod Ricard?
Pernod Ricard plans to pursue all available legal options to secure a new license for the current financial year.
What brands does Pernod Ricard produce?
Pernod Ricard is known for popular brands such as Chivas Regal, Absolut Vodka, and Glenlivet.
Nation Press