Pernod Ricard drops challenge to $314m Indian tax bill
French spirits giant Pernod Ricard has withdrawn its challenge to the Indian government’s demand for US$314 million in back taxes.
The Delhi High Court’s multi-year investigation into Pernod Ricard took a twist this week as the Absolut Vodka owner withdrew its challenge to an order to pay back taxes.
The US$314 million tax bill relates to Pernod Ricard’s alleged undervaluation of Scotch whisky imports from its UK subsidiary Chivas Brothers.
Pernod Ricard markets multiple ‘strategic local brands’ in India that comprise Scottish whiskies blended with locally produced spirit.
This includes Royal Stag, which sold 32.6 million nine-litre cases in 2025 alone.
Indian authorities issued an initial tax demand warning to Pernod Ricard in 2022, after alleging that the firm had misrepresented the age and composition of whiskies entering the country to reduce outgoings from import tariffs.
Tariffs on imported whisky stood at 150% at the time, although this was reduced to 75% earlier this month as the UK-India Free Trade Agreement (FTA) came into force.
A final tax demand order followed in September 2025.
Pernod Ricard challenged the ruling on the grounds that it did not have access to the complete import data used by investigators.
In withdrawing that challenge, the company’s representatives will shift their legal strategy to appeal the case with India’s tax authorities.
Pernod Ricard has declined The Spirits Business’ request for comment.
Challenges mount for Pernod Ricard in India
The ongoing tax dispute between Pernod Ricard and authorities in New Delhi isn’t the only challenge to the company’s ambitions in India.
In May 2026, antitrust watchdog the Competition Commission of India ordered an investigation into Pernod Ricard.
This followed allegations that the company had paid corporate guarantees to bankers to help retailers secure loans, with the expectation that they would give favourable listings to Pernod Ricard products.
Later that month, officials in Delhi rejected Pernod Ricard’s bid to sell its products in the city on the grounds that it was the subject of a formal antitrust investigation.
Pernod Ricard employs more than 1,500 people in India and operates 24 production sites across the country.
In April 2026, the firm’s full-year forecast showed that year-to-date sales in India had grown by 11% in value and 6% in volume.
India is already the world’s largest market for whisky in terms of volume, but its value is expected to increase significantly under the new UK-India FTA.
Nodjame Fouad, CEO of the aged spirits and Champagne division at Pernod Ricard, welcomed the agreement, saying: “The opening up of the Indian market represents a significant opportunity for the UK as the world’s leading exporter of spirits, and a welcome boost for the Scotch whisky industry.”
Pernod Ricard broke ground on what is believed to be the largest malt whisky distillery in Asia in 2024.
The facility in Maharashtra has a capacity of 13 million litres of pure alcohol per year, and is expected to employ up to 800 people.
In February 2026, the Paris-headquartered company refused to comment on rumours that it was preparing for an initial public offering of Pernod Ricard India.
Related news
Pernod Ricard reportedly mulls India IPO
