Ban In Delhi, Rs 3,000 Crore Tax Dispute: Why Delhi High Court Punished Absolut Vodka Maker

New Delhi: The Delhi High Court on Friday held that French liquor giant Pernod Ricard, known for its popular brands like Absolut Vodka and Chivas Regal, “ineligible" for a licence because of the ongoing investigation against it. Pernod Ricard had moved a petition at the court asking for permission to sell its beverages in Delhi.

Pernod Ricard's operations in Delhi remained suspended since 2023 after allegations over its alleged links to the 2021 excise policy controversy surfaced. Following this, officials have repeatedly rejected its applications, citing allegations by the Enforcement Directorate that Pernod Ricard worked with retailers to improperly expand its footprint in Delhi's alcohol market.

The Delhi High Court stated that the company could not be granted a fresh liquor licence while investigations connected to the case are ongoing, declaring it “ineligible” under the current circumstances.

According to a Reuters report Pernod Ricard is also under scrutiny in a customs duty dispute; investigators have accused the firm of providing misleading details about the age and blend composition of imported Scotch whisky so that it could attract lower import duties.

Authorities have reportedly demanded nearly $314 million, or roughly Rs 3,000 crore, in alleged unpaid taxes. Along with penalties, the total financial exposure of Pernod Ricard could rise beyond Rs 5,700 crore.

India is Pernod Ricard’s biggest market worldwide in terms of sales volume, and before its exit from Delhi, the national capital alone comprised five per cent of the company’s business in the country. Pernod Ricard however argued that investigators failed to share crucial pricing-related information relied upon during the inquiry.

Though Reuters had first highlighted the tax dispute in 2022, recently examined investigation records and court filings submitted before the Delhi High Court have brought additional details of the probe into the public domain.

Investigators reportedly concluded in September 2025 that the company had introduced internal code-based descriptions for imported malt consignments, which made it harder for customs officials to compare Pernod’s imports with competing brands.

Probe agencies have also alleged that the liquor major withheld accurate details regarding the age and composition of imported malts to understate the actual value of the products and avoid closer customs scrutiny.

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