The Economic Times daily newspaper is available online now.

    Chivas-maker Pernod Richard moves HC against Delhi licence rejection

    Synopsis

    Senior counsel Mukul Rohatgi, appearing for the company, said neither the company nor its any employee was mentioned in the CBI chargesheet in the liquor policy case and the government had mixed up the people who were part of the chargesheet. "There is a south lobby of politicians and there is a man in Delhi called Vijay Nair. The south lobby gave money to Nair so that policy was in favour of the former," he argued, adding that "all the facts (taken note of by the Delhi government) are wrong as they have jumbled all the people's names in the chargesheet."

    Chivas-maker Pernod Richard moves HC against Delhi licence rejectionAgencies
    French liquor major Pernod Ricard on Wednesday moved the Delhi High Court seeking a direction to the Delhi government to grant it a liquor sale licence in the National Capital Territory of Delhi.

    Justice Pratibha Singh issued a notice to the Delhi government and its excise department for rejecting Pernod Ricard's licence to sell liquor in the national capital.

    On April 13, the government in its order rejecting Pernod's application for 'wholesale vend of Indian liquor' had said that the company and its employees "had active involvement in the criminal conspiracy." The high court listed the case for further hearing on May 10.

    In August, the Delhi government had scrapped its excise policy following allegations of irregularities and favouritism in granting liquor licences to private vendors. The Lieutenant Governor had then referred the matter to the CBI.

    Alleging that the Delhi government's action "smacks of arbitrariness and infringes on its fundamental rights," the Indian arm of the French company said the government's decision was based on criminal allegations against the company, but it had disregarded the fact that no wrongdoing had been proved yet.

    Pernod Ricard, the maker of Chivas Regal and Absolut Vodka, has sought quashing of the department's order which is ridden with erroneous and inaccurate findings and is completely contrary to the Excise Act and passed with a "pre-meditated mind."

    "Merely because there may be certain allegations ... cannot be equated with a criminal or be considered as having a criminal background... There is no criminal conviction... The excise department erroneously concludes that a chargesheet has been filed against the petitioner and its employee when in fact, no such chargesheet has been filed," Pernod Ricard said in its petition.

    Senior counsel Mukul Rohatgi and counsel Anuj Berry, appearing for the company, said neither the company nor its any employee was mentioned in the CBI chargesheet in the liquor policy case and the government had mixed up the people who were part of the chargesheet.

    "There is a south lobby of politicians and there is a man in Delhi called Vijay Nair. The south lobby gave money to Nair so that policy was in favour of the former," he argued, adding that "all the facts (taken note of by the Delhi government) are wrong as they have jumbled all the people's names in the chargesheet."

    However, Rohatgi said that only one Benoy Babu, who was its regional manager, had been named as an accused by the Enforcement Directorate in the money laundering case and this disclosure was itself made by the company in August. A single employee's arrest cannot be cited as reason for rejecting our licence, he told the HC.

    However, the Delhi government counsel said that an equally efficacious remedy was available to the company if it went to the deputy excise commissioner rather than moving the HC.


    (You can now subscribe to our Economic Times WhatsApp channel)
    (Catch all the Business News, Breaking News, Budget 2024 News, Budget 2024 Live Coverage, Events and Latest News Updates on The Economic Times.)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the ET ePaper online.

    ...more

    (You can now subscribe to our Economic Times WhatsApp channel)
    (Catch all the Business News, Breaking News, Budget 2024 News, Budget 2024 Live Coverage, Events and Latest News Updates on The Economic Times.)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the ET ePaper online.

    ...more
    The Economic Times

    Stories you might be interested in