What is the $300 million federal tax demand against Pernod Ricard in India about, and how does the company respond?

The $300 million federal tax demand stems from a dispute over the valuation of Pernod Ricard’s Scotch whisky imports into India over more than a decade; Indian customs authorities allege the company withheld information on the age and composition of its imports to understate their value and pay lower tariffs, calling it a 'habitual litigant' engaged in a 'conspiracy to defraud the government of revenue' in a 2022 court filing. Pernod Ricard is challenging the demand in the Delhi High Court, arguing it was denied access to key pricing data used in the investigation.

Why was Pernod Ricard shut out of the Delhi liquor market, and what impact has this had on its business?

In April 2023, New Delhi authorities rejected Pernod’s application to renew its liquor sale licence, citing ongoing investigations—including those by the Enforcement Directorate into its alleged role in the 2021 Delhi liquor licence auction—and declared the company 'in contravention' of rules barring manufacturers from indirect retail participation, such as via bank guarantees. As a result, Pernod stated it suffered 'massive losses' with its brands unavailable in the city, and by May 2026, described its business as 'hopelessly fettered' for three years while pursuing a fresh court challenge against the licence rejection.