Pernod Ricard, the maker of Absolut vodka, remains barred from selling its liquor brands in Delhi amid a massive tax and customs dispute [1, 2].
The restriction limits the company's reach in one of India's largest urban markets. This legal impasse threatens the brand's regional revenue and highlights the volatility of liquor policy enforcement in the capital.
Brands owned by Pernod Ricard have been unavailable for sale in Delhi since 2023 [1]. The ban is tied to the company's involvement in a liquor-policy case dating back to 2021 [1, 2].
Beyond the sales restriction, the company is embroiled in a customs and tax dispute. The payout amount currently in question is approximately ₹3,000 crore [2].
The Delhi High Court recently rejected a plea from the company to resume its sales operations in the city [1]. The court's decision ensures that the ban remains in place while the legal proceedings regarding the 2021 policy case and the tax liabilities continue.
Legal challenges involving liquor policies in Delhi have frequently led to market disruptions for international spirits companies. Pernod Ricard's struggle to regain market access persists as the government seeks resolution on the outstanding ₹3,000 crore claim [2].
“Pernod Ricard, the maker of Absolut vodka, remains barred from selling its liquor brands in Delhi”
The continued ban on Pernod Ricard in Delhi signifies a strict regulatory approach by the Indian government toward liquor policy compliance and tax recovery. A dispute of ₹3,000 crore represents a significant financial liability that could impact the company's broader valuation and operational strategy within the Indian market, which is one of the world's fastest-growing spirits consumers.
