The Delhi government has denied Pernod Ricard's request to extend its liquor selling permit. Pernod Ricard is a French alcohol company best known for its Chivas Regal scotch whisky and Absolut vodka. The refusal was decided in light of continuing inquiries into the business.
Despite being from April 13, the order was not previously disclosed. According to a recent report by the news agency Reuters, the choice was decided after considering the application submitted by the spirit company and 'significant documentation' that were obtained from Indian investigation agencies.
According to the decision, these agencies had made charges that Pernod had been making illicit profits by providing retailers with incorrect price information and financial help in exchange for their continued stocking of more of the company's brands. The business has been charged with participating in the "criminal conspiracy" together with its employees.
On the other hand, Pernod insists that it has committed no wrongdoing. It has not yet responded to the news, though.
It had testified in March before a Delhi court that it had suffered significant losses as a result of its brands being unavailable in the city for up to 6 months due to a delay in the renewal of its licence. The city officials had been given two weeks by a judge to make a decision.
The following step for Pernod would be to appeal to senior Delhi government officials.
Pernod is also fighting a tax claim for about $250 million for undervaluing imports.
