Delhi Seeks to Block Pernod Ricard’s License Challenge

Regulators in India’s capital are seeking to block Pernod Ricard’s latest court challenge to the rejection of its liquor license in Delhi, extending a dispute that has kept the French spirits company out of one of its most important urban markets for three years.

Court filings seen by Reuters show that Delhi authorities asked the High Court to dismiss Pernod’s petition, arguing that the government has broad powers to regulate and restrict liquor licensing and that granting the company a permit would expose the system to risk. The court is scheduled to hear the case on Thursday.

Pernod, which says India is its largest market by volume, has been trying since 2023 to regain its Delhi city liquor license after officials refused to renew it. The company said the loss of access to the capital has left its business there “hopelessly fettered.” Delhi typically accounted for about 5% of Pernod’s sales in India, where the company reported countrywide revenue of $2.86 billion in the year ended March 2025.

The dispute centers on allegations from India’s financial crime agency that Pernod colluded with retailers in Delhi in 2021 to increase its market share illegally. Pernod has denied wrongdoing and says it has not been convicted in any case. Officials have cited those allegations as the reason for rejecting the license request, including in February, when they turned down the company’s plea for a fourth time.

The latest rejection prompted Pernod to file a new challenge in March at the Delhi High Court. Reuters reported those details for the first time. In a statement, Pernod said it continues to believe it should be allowed to operate in Delhi and is pursuing legal remedies.

The case has broader implications for India’s alcohol market, where premium imported and domestic spirits compete for shelf space and visibility in major cities. Delhi, home to more than 20 million people, is also an important launch market for alcohol brands and a destination for tourists who often buy premium spirits, according to Amulya Pandit, a senior consultant at Euromonitor who specializes in drinks markets.

The ban has kept consumers in the capital from buying some of Pernod’s best-known labels, including Chivas Regal, Absolut Vodka and Glenlivet. It has also complicated the company’s distribution strategy in India, where it competes with Diageo, Suntory and William Grant across a $65 billion alcohol market.

Last week, India’s antitrust regulator opened a separate investigation into similar allegations involving Pernod and retailers. That inquiry adds another layer of scrutiny at a time when regulators are taking a harder line on alcohol licensing and market conduct.

Delhi authorities did not respond to Reuters’ questions about the case.