Chivas-maker Pernod challenges New Delhi city licence rejection in court

By Aditya Kalra and Arpan Chaturvedi

NEW DELHI (Reuters) -Pernod Ricard has asked an Indian court to push New Delhi city authorities to grant it a liquor sale licence, after local officials rejected the French company's request, citing certain investigations, a legal filing shows.

In a 332-page court filing at the Delhi High Court on April 23, the maker of Chivas Regal and Absolut Vodka argues Delhi authorities made the decision based on unproved allegations against the company.

"Merely because there may be certain allegations ... cannot be equated with a criminal or be considered as having a criminal background," Pernod Ricard's filing stated. "There is no criminal conviction."

An Indian federal agency has accused Pernod of illegally making profits by giving false information to Delhi city authorities in 2021, and violating rules by financially supporting retailers in exchange for stocking more of its brands. Pernod has repeatedly denied wrongdoing.

The Delhi government in its April 13 rejection of the company's license request said Pernod and its employees "had active involvement in the said criminal conspiracy".

The Delhi High Court on Wednesday asked Delhi authorities to file a written response to Pernod's filing and posted the case for next hearing on May 10.

Reuters is first to report details of Pernod's legal challenge in the battle the spirits group has said is causing it "massive losses" as none of its brands have been available in the capital for more than six months.

The company and the Delhi city government did not respond to requests for comment.

Pernod has operated for more than 20 years across India, where licences to operate are individually granted by states or in this case, the national capital territory, and mostly have to be renewed every year.

The company counts India as a key market where it has a 17% share and competes with Diageo.

Reuters also reported on Wednesday, citing sources, that Pernod Ricard's managing director for India, Paul-Robert Bouhier, has resigned, a top-level departure at a critical time.

(Reporting by Aditya Kalra and Arpan Chaturvedi; Editing by Sonali Paul and Elaine Hardcastle)