Criminal proceedings, lack of 'moral probity' stop Pernod Ricard from re-entering Delhi
In its 16-page order, while rejecting the French company's liquor licence renewal plea, the Excise Department cited "serious economic offences" and ongoing criminal investigations as justification for the continued denial.
The Commissioner said that "the action of the Excise Department aligns with principles of public trust, moral integrity, revenue protection, and regulatory discretion as mandated under the Delhi Excise Act, 2009", sending a fresh blow to the maker of popular labels like Chivas Regal, Absolut Vodka and Glenlivet.
This is the third consecutive rejection for Pernod Ricard.
The company has been out of the key Delhi market since 2022 following the scrapping of the city's contentious 2021-22 excise policy under the then Aam Aadmi Party (AAP) government, which triggered investigations by the Central Bureau of Investigation (CBI) and Enforcement Directorate (ED).
The ED had accused the French liquor major of gaining unfair market dominance by unlawfully supporting local retailers through bank guarantees. The CBI, however, did not formally charge Pernod Ricard in connection with the excise investigation.
According to the Delhi Excise Commissioner's order, a copy of which has been seen by IANS, the Supreme Court and High Court have recognised that licensing authorities have the discretion to assess the moral character of applicants, considering pending criminal charges wherever relevant.
"The final decision must be based on a thorough evaluation of the individual's conduct and the nature of the alleged offence. In light of the above principles and doctrines, the decision to reject Pernod Ricard India Private Limited's L1 license application vide order dated 13.04.2023 of Deputy Commissioner (Excise/Licensing Authority stands firmly grounded in legal jurisprudence and is therefore upheld forthwith," the order stated.
In a statement, a Pernod Ricard spokesperson said: "This order pertains to our earlier FY22-23 license application."
"While we do not agree with it, our main focus is on securing a fresh license for the current Financial Year. We will continue to pursue all legal avenues available to us. We remain confident in the strength of our legal position and look forward to resuming operations in Delhi at the earliest," the spokesperson added.
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