Pernod Ricard withdraws legal challenge over $314 million India tax dispute

Tuesday 21 July 2026 - 09:42

By: Sahili Aya

Pernod Ricard withdraws legal challenge over $314 million India tax dispute

French spirits giant Pernod Ricard has withdrawn its legal challenge against a major tax demand from Indian authorities involving approximately $314 million in alleged unpaid duties, according to a court order reviewed on Tuesday.

The decision marks a new development in a dispute that has lasted for several years and centres on accusations that the company undervalued Scotch whisky imports into India. Pernod Ricard has previously contested the allegations, but its withdrawal from the court proceedings changes the trajectory of one of the company’s most significant regulatory battles in the country.

The tax dispute remains a major issue for the group as India represents one of its most important global markets, contributing around 10% of worldwide sales and ranking as its largest market by volume.

A strategic market facing regulatory challenges

India has become a key growth market for international beverage companies due to its expanding middle class and rising demand for premium spirits. Pernod Ricard has established a strong presence in the country through brands such as Absolut vodka and its portfolio of whisky products.

However, the company has faced several regulatory challenges in recent years. Alongside the tax investigation, Pernod is also dealing with an antitrust case and a separate dispute linked to liquor regulations in New Delhi.

The French company has denied wrongdoing in relation to the various allegations and continues to defend its position in ongoing legal matters.

Tax authorities target import valuation practices

The Indian tax case focuses on the valuation of imported Scotch whisky products, with authorities arguing that the declared value of certain shipments did not accurately reflect their worth for customs purposes.

Such disputes are not uncommon in India, where multinational companies often face complex tax and regulatory environments as they expand operations in the country.

The withdrawal of the court challenge does not immediately clarify whether Pernod Ricard has accepted the tax demand or whether further discussions with authorities may follow.

Pernod Ricard’s India ambitions remain under pressure

Despite the legal challenges, India remains central to Pernod Ricard’s international strategy. The company has invested heavily in developing its presence in the country’s competitive spirits sector, where global brands compete with domestic producers.

The outcome of the tax dispute could have broader implications for foreign companies operating in India, particularly regarding customs assessments and compliance expectations.

For Pernod Ricard, resolving regulatory uncertainty in one of its most important markets will remain a key priority as it seeks to maintain growth in the region.