The maker of Chivas Regal whisky and Absolut vodka counts India as its biggest global market by volume. It competes with the likes of Diageo in the country.
Here’s a list of its challenges:
FEDERAL TAX DEMAND
Pernod faces a federal tax demand of more than $300 million in a dispute over the valuation of its imports for over a decade.
Indian investigators have concluded Pernod Ricard withheld the age and composition of its Scotch imports to hide their true value so it could pay lower tariffs.
In an October 2022 court filing, India’s customs authority called the company a “habitual litigant,” accusing it of a conspiracy to defraud the government of revenue.Pernod is currently challenging the tax demand in the Delhi High Court, arguing that it was not given access to key pricing data used in the investigation.
ANTITRUST CASE
India’s antitrust watchdog has ordered an investigation into Pernod Ricard over alleged exclusive deals with retailers to promote its brands at the expense of rivals.
Since 2024, the Competition Commission of India has been reviewing allegations that Pernod colluded with retailers in New Delhi to boost its market share.
DELHI INVESTIGATION
Since 2022, Pernod has faced scrutiny from India’s financial crime agency, the Enforcement Directorate, in an investigation of how retailers, manufacturers and politicians are alleged to have colluded to illegally profit from the 2021 auction of liquor retail licences in New Delhi.
The capital’s liquor policy barred manufacturers from participating in retail sales, directly or indirectly. Pernod was “in contravention” as it effectively used bank guarantees to invest in retailers, the agency said.
The agency also accused Pernod of illegally making profits of $23 million by giving false price information to Delhi authorities.
Pernod has strongly denied the allegations.
SHUT OUT OF DELHI MARKET
In April 2023, New Delhi authorities rejected Pernod’s application to renew its liquor sale licence, citing investigations into the company. Pernod told a Delhi court it had been suffering “massive losses” as its brands were not available in the city.
In May 2026, Reuters reported that regulators in India’s capital are seeking to strike down Pernod’s fresh court challenge against the rejection of its city liquor licence, which the company says has left its business “hopelessly fettered” for three years.
IMPACT ON INVESTMENTS, BUSINESS
Tax disputes since 1994 have made it tough to do business in India, Pernod has said.
In a 2021 letter to Prime Minister Narendra Modi, it said “ever-lasting litigation” had been a big strain on its business and inhibited fresh investment by the group to expand in India.
In July 2022, it told the federal tax authority it faced “significant” business continuity challenges as operational issues choked its supply chain.