Pernord Ricard

Pernod Ricard is accused by the ED of creating illegal profits in Delhi

The French spirits company, the Indian division of Pernod Ricard, has been charged by the Enforcement Directorate for breaking Delhi’s liquor laws and providing misleading price information in order to increase market share and make $23 million in illicit profits in India. Pernod has refuted the allegation.

In a court filing dated November, ED said that while Delhi Government policy forbade manufacturers from engaging in retail sales, Pernod Ricard had, in reality, utilised corporate assurances to invest in merchants who submitted store licencing bids. Pernod has said that it did nothing illegal. ED referenced a Pernod PowerPoint presentation in the latest complaint to claim that the corporation had an internal strategy to “take control of retail shops, create flagship stores” in an effort to control “retail businesses in Delhi.”

Pernod Ricard was a member of a push to privatize retail liquor outlets

According to ED’s citation of an email sent by Mishra to group CFO Helene de Tissot in mid-2021 when he was acting India chief financial officer (CFO), Pernod’s “support” of the associates who were competing for licences in Delhi had the potential to produce an additional $15 million “benefit over 3 year period.”

Mishra claims that the company’s connections with retailers “will also enable us to counter the threat of local players, our other key battleground.” In response to the emails, a government panel formalised a strategy. The strategies under which the government would leave the retail industry and only let private parties compete for shop licences.

Pernord Ricard
Credits: The Economic Times

Mishra and Tissot had no comments about the report

This year, Delhi reversed the regulation, putting an end to the dominance of private retail stores. Right present, only government-run stores may sell alcohol. Babu was detained in November on suspicion of breaking Delhi’s alcohol laws. Last week, his bail request was denied, and he is still being detained. He claims his arrest was “illegal” and was “falsely implicated” in court. Mishra is not currently in custody.

There was no mention of Tissot’s email answer in the court filings from India. A Pernod spokeswoman informed Reuters that Mishra and Tissot had no comments about the report. The Indian agency said that Pernod was part of an industry drive to urge authorities to privatise retail liquor outlets. Additionally,  intended to enhance its control of retail distribution in Delhi.

The company Pernod Ricard SA produces alcoholic and non-alcoholic drinks in addition to wines and spirits. Products are sold under the following brands: Absolut Vodka, Chivas Regal, Ballantine’s, Beefeater, Jameson, Kahla, Malibu, Ricard, Havana Club, Martell, Cognac, The Glenlivet and many others.