Secret report exposes what happened inside Pernod's India business
Internal probe by law firm found top-level rule breaking in Pernodʼs India unit operations. French drink makers Delhi business now faces $67 million liability and sales restrictions in the capital
An in-house investigation of Pernod Ricard India discovered law-breaking by its top-brass in New Delhiʼs retail sector‚ despite the companys public denial of any wrong-doing
The probe (done by an Indian law firm) found that Rajesh Mishra‚ then chief-operating-officer and other high-ups broke rules by working too close with liquor shops; this happened around the time when Delhi changed its store-running rules in 21
The enforcement agency thinks the company helped retailers with $24 million in guarantees to get licenses - this was their way to get more shelf-space for their drinks. The report shows that Mishra sent emails about giving financial help to store owners: something that wasnt allowed
- Sales stopped in Delhi
- $67 million possible fine
- Market-share issues
- Legal cases pending
The report points to some not-so-good stuff: Benoy Babu‚ another big-shot got named in it; he spent time in jail but says hes innocent. The investigation also found that Mishra had secret government papers before they became public which doesnt look good
The company makes big money in India (about $3.2 billion in sales) but now its got problems - tax people want $250 million from them and theres more legal stuff going on. Its looking like a rough time for the maker of Absolut vodka in its biggest market by volume
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This whole thing started when Delhi changed rules to let private shops sell drinks instead of government ones. Even though those rules changed back the problems dont seem to be going away anytime soon
