Delhi HC backs licence denial to Pernod Ricard, locking French spirits giant out of capital

Delhi High Court dismissed Pernod Ricard's plea challenging the rejection of its L-1 wholesale liquor licence, citing pending ED prosecution tied to the scrapped Delhi excise policy. The maker of Absolut, Chivas Regal and Glenlivet remains shut out of the Delhi market for a third year, with ₹5,700 crore potential tax liability looming.

— Source publishedFri, 29 May, 2026, 19:44 IST·First seen Fri, 29 May, 2026, 19:59 IST·Source Business Standard · Companies

What happened

Delhi High Court dismissed Pernod Ricard's plea challenging denial of L-1 wholesale liquor licence, citing pending ED prosecution in the Delhi excise policy

Key facts

  • $3 billion annual India sales
  • $314 million tax demand
  • ₹3,000 crore back taxes
  • ₹5,700 crore potential liability

Why this matters

The licence denial precedent tied to pending ED action raises diligence stakes on any Indian liquor M&A or JV exposure linked to the scrapped Delhi excise policy.

Also reported by