Pernod Ricard Shifts Legal Strategy in $314 Million India Scotch Whisky Tax Dispute

In this photo illustration, the Pernod Ricard company logo is seen displayed on a smartphone screen with United States dollar banknotes in the background. (Photo: Piotr Swat / SOPA Images/Sipa USA/ AP)

French spirits giant Pernod Ricard has withdrawn its court challenge against a $314 million tax demand in India, opting instead to appeal the case through the country’s tax authorities as it continues to battle one of its biggest regulatory disputes.

According to Reuters, the Delhi High Court dismissed Pernod Ricard’s petition after the company chose to withdraw the case and pursue what the court described as a “statutory alternative remedy of appeal.”

The Indian government said it had no objection to the move. If Pernod loses the case, penalties could push its total liability above $600 million. Per Reuters, that amount would equal roughly one-fifth of the company’s annual revenue in India and about three times its profit in the country.

The dispute stems from a four-year investigation in which Indian tax authorities accused Pernod of undervaluing imported Scotch whisky by failing to fully disclose the composition and age of its whisky blends, allegedly reducing duties on imports subject to India’s 150% tariff. Reuters previously reported that the tax demand was issued in September 2025.

Pernod’s Scotch whisky division includes brands such as The Glenlivet, Chivas, Ballantine’s and Royal Salute.

Pernod had argued in court that Indian authorities failed to provide key investigation materials that would have allowed the company to properly defend itself. Rather than continue the court fight, it will now appeal directly through India’s tax system, though Reuters said it was not immediately clear why the company changed course after pursuing the lawsuit for nine months.

Government lawyer Anurag Ojha told Reuters the appeal will likely be filed with a commissioner in India’s tax authority.

The investigation concluded that Pernod had “intentionally complicated” its import disclosures by using new internal malt codenames that allegedly made it more difficult for authorities to determine the correct tariff treatment, according to Reuters. Pernod has repeatedly denied wrongdoing, saying it “rejects any suggestion of wrongdoing” and remains confident in its legal position.