The court has observed that the ongoing investigation gives the company a criminal background under the New Delhi Municipal rules
On account of pending criminal prosecution by Directorate of Enforcement (ED), the Delhi High Court (HC) has dismissed a plea filed by multinational company Pernod Ricard seeking permission to sell its products on in New Delhi.
The case stems from an ongoing investigation where the federal financial crime agency has accused the company of colluding with some retailers in Delhi to increase its market share. The reports noted that the city authorities in Delhi have repeatedly denied the company a license to sell its products such as Absolut vodka and Chivas Regal Whisky, as per the reports.
Observing that the ongoing investigation gives the company a criminal background under the New Delhi Municipal rules, Justice Purushaindra Kumar Kaurav said that this makes the company ineligible for a license, the reports added.
The company had challenged the order passed by the Financial Commissioner of Delhi, upholding an order of the Excise Commissioner, rejecting the applications. Reuters reported that the company said that three years of denials had left its business hopelessly fettered in New Delhi.
In another case, the company is battling a demand from Indian tax authorities to pay USD 314 million in back taxes on few of its scotch imports. The reports noted that the company is also facing allegations of hiding the composition and age of its imports malts.
In April, Pernod Ricard SA refuted the reports of a potential initial public offering of its Indian subsidiary and said that no decision has been taken, following reports that the French spirits maker had begun early preparations for a possible listing.
According to media reports, the maker of Absolut vodka and Chivas Regal whisky had started preliminary work on a potential IPO for its India business. However, the company clarified that there was nothing definitive at this stage
