Pernod Ricard faces regulatory hurdles in India
The French spirits giant is navigating a federal tax demand of over 300 million dollars and antitrust investigations regarding its market practices in India. These ongoing legal challenges and licensing rejections in New Delhi have significantly impacted the company's regional operations and investment plans.
Pernod Ricard SA faces intensifying regulatory and legal pressure in India that threatens its largest global market by volume. The France-based distiller is navigating a $300 million tax demand and a multi-year exclusion from the New Delhi retail market. These compounding hurdles risk stalling fresh investment and disrupting supply chains for Pernod Ricard.
### Tax Disputes and Import Valuations Indian federal investigators are pursuing more than $300 million from Pernod Ricard over a decade-long dispute regarding Scotch import valuations. Authorities at the customs agency alleged in a court filing that Pernod Ricard withheld the age and composition of imports to lower its tariff obligations. Pernod Ricard is currently challenging this demand in the Delhi High Court, citing a lack of access to the pricing data used in the probe.
