India has officially rejected Pernod Ricard's plea against allegations of collusion with retailers in Delhi to illegally boost its market share in 2021. The French spirits giant now describes its business in the country as 'hopelessly fettered'.
Government Stance
Officials turned down the company's pleas, citing 'serious' allegations levelled by India's financial crime agency. The agency accused Pernod of working with local retailers to manipulate market dynamics in its favor.
Company's Response
Pernod Ricard expressed deep disappointment, stating that the rejection severely impacts its operations. The company emphasized its commitment to compliance but noted that the regulatory environment has made business untenable.
The case dates back to 2021 when authorities began investigating alleged irregularities in Delhi's liquor market. Pernod has consistently denied any wrongdoing.
This development marks a significant setback for the company, which has been seeking to resolve the matter through legal channels. Industry analysts suggest this could lead to reduced foreign investment in India's liquor sector.
