This Delhi High Court ruling against Pernod Ricard is not small setback ah,because court has basically said pending criminal proceedings can matter while deciding liquor license eligibility . And for big French wine and spirits conglomerate,this is serious blow.
Delhi High Court affirmed rejection of Pernod Ricard’s wholesale liquor license application,especially its L-1 license issue . Reason given was company’s "criminal background" as understood under Delhi Excise Act .
Justice Purushaindra Kumar Kaurav said authorities were within their rights while rejecting application . Court pointed to ongoing prosecution connected with allegations of involvement in Delhi excise policy scam,and that became main problem for company.
And honestly,this is where legal argument becomes very interesting . Pernod Ricard’s side said pending prosecutions should not be treated like criminal background,because conviction has not happened . Fair point on surface.
But court did not accept that reading . Delhi High Court looked at Section 13(1)(c) of Delhi Excise Act and said requirement of not having criminal conviction is just baseline,not full limit of scrutiny . Meaning,authorities can look beyond conviction status while assessing applicant.
Few things standing out clearly here:
- Ongoing prosecution — Pernod Ricard faces charges linked to a money laundering case .
- License applications rejected — Based on company’s alleged involvement in excise scam.
- Opportunity to reapply — Pernod Ricard can seek a license again if legal circumstances change.
This ruling came after Pernod Ricard challenged earlier order of Financial Commissioner,which had upheld Excise Commissioner’s decision to deny licenses . Company argued law was misinterpreted,but court sided with government’s stand on keeping licensing process clean.
And tbh,for liquor business in Delhi,this is not just paperwork issue . L-1 license means entry into wholesale liquor trade,and once court says "criminal background" can include pending prosecution,it changes how companies may be judged before final conviction also.
There is another headache too . Pernod Ricard is also under investigation by Competition Commission of India for allegedly making exclusive agreements with retailers in Delhi . These agreements are alleged to hurt competition and push its own products over rival brands,so CCI has ordered investigation into that also.
So right now,Pernod Ricard is facing pressure from more than one side — excise licensing,Delhi excise policy scam allegations,money laundering case,and CCI scrutiny . Question is,how long can company keep fighting all this before business itself starts feeling full impact…
