by Aditya Kalra

NEW DELHI (Reuters) – India’s capital New Delhi has rejected a request by Pernod Ricard to renew a license to sell alcoholic beverages, citing ongoing investigations in the country against the group, struggling in this crucial market.

The April 13 order issued by city authorities, and seen by Reuters, says the decision was made after reviewing Pernod Ricard’s license application as well as “numerous documents” received from government agencies. investigation in India.

A federal investigation is being conducted against the French group on suspicion of violations of the Delhi government’s policy on the fight against alcohol consumption, which led to the arrest last November of a commercial director of the local subsidiary.

In the 12-page order, it is written that “Pernod Ricard India Private Limited and its employees actively participated in the said criminal conspiracy”.

The Indian authorities are also claiming the equivalent of 250 million euros from the local subsidiary of Pernod Ricard for having undervalued the value of imports of concentrates for several years in order to limit the amount of duties to be paid.

Pernod Ricard, which has denied any wrongdoing, said in a statement on Tuesday that it would challenge the decision of New Delhi authorities not to renew the license.

“Pernod Ricard’s business in India is a great success despite the situation in New Delhi,” added the group, which has a 17% market share in the country.

Last month, Pernod Ricard said it faced “massive losses” for its business in India due to the unavailability of its spirits brands in the capital New Delhi for six months linked to the licensing problem.

On the Paris Bourse, the Pernod Ricard share fell 2% on Tuesday to 207.30 euros at 1:05 p.m. GMT, the red lantern of the CAC 40 (+0.7%).

(Aditya Kalra report; Blandine Hénault for the , edited by Matthieu Protard)

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