by Arpan Chaturvedi and Aditya Kalra
NEW DELHI (Reuters) – Pernod Ricard breached an alcohol policy in India’s capital New Delhi by financially supporting distributors who, in exchange, stocked more of the French spirits group’s products, boosting its market share, according to the country’s financial crime agency.
According to court documents from November, India’s Enforcement Directorate said Pernod Ricard India provided corporate guarantees worth two billion rupees (22.6 million euros). ) in 2021 to its banker HSBC.
He then asked him to facilitate the granting of loans to distributors, who used the funds to obtain liquor store licenses in New Delhi.
New Delhi government policy prohibits liquor groups from participating in the distribution of their products, either directly or indirectly. According to documents reviewed by Reuters, the French group found itself “in contravention” of this rule because it effectively used bank guarantees to invest in a distribution network.
The documents are not public and details of the allegations against Pernod Ricard have not previously been released.
The Pernod Ricard India group, which has firmly denied these allegations, indicates that it “will continue to cooperate fully with the Indian authorities in this matter.”
The head of international brands for Pernod Ricard India, Benoy Babu, was arrested in November and detained in connection with the case. He is charged with money laundering under Indian laws and violating New Delhi’s liquor policy.
Benoy Babu, who denies these charges, has not been charged and is asking to be released on bail. A New Delhi court will consider his claim on January 19.
(Report by Arpan Chaturvedi and Aditya Kalra in New Delhi, French version Dina Kartit, edited by Blandine Hénault)
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