Delhi High Court seeks Delhi government response to plea by Pernod Ricard for liquor license

The Delhi High Court on Wednesday issued notice to the Delhi government and its excise department on a plea by Pernod Ricard India (PRI) challenging the government's decision to deny L1 license to the company for supply of liquor in the national capital..Justice Prathiba M Singh ordered the government to file its response within a week and said that the case will now be considered on May 10. Pernod Ricard India is the Indian subsidiary of French wine and spirits firm Pernod Ricard. Interestingly, the Enforcement Directorate (ED) had arrested one of its executives, Benoy Babu, in the alleged Delhi excise policy scam.In an earlier order passed on March 29, the High Court had directed the government to consider PRI's application for grant of license within two weeks. On Wednesday, the Court was told that the government has rejected the petitioner's application. It was stated the excise rejected its application relying on Section 13(1)(c), 13(1)(4) and 44 of The Delhi Excise Act. These provisions provide that the license should not be given to companies that employ people of criminal background. Senior Advocate Mukul Rohatgi appeared for PRI and argued that there has been no provisional attachment of the company's accounts. He said that the firm employs over 5,000 people across the country and the Enforcement Directorate (ED) has arrested one regional manager. .In its plea, Pernod Ricard stated that it applied for the L1 license first in August 2022 for two of its manufacturing units. However, the excise department failed to decide the applications.The Court was told that in September 2022, the excise department even issued a letter approving the grant of license to the firm but no action was taken pursuant to this letter.In fact, the excise department directed PRI to submit police verification certificates (PVC) under Section 13(c) of the Excise Act, 2009 within 3 days, even though such a condition is usually imposed after the grant of the L1 License, the plea stated.It contended that the company had complied with all conditions laid down by the excise department and had even submitted the PVCs as directed by them, yet the application for license remained pending.The petition further said that government's order denying it the license "is materially incorrect, patently illegal and is beyond not only the mandate of the Excise Act, but is in the teeth of settled principles of criminal law i.e., one is innocent until proven guilty"."The order reeks of a pre-conceived mindset and ex- facie demonstrates non- application of mind by Respondent No. 2 (Excise Department) and therefore is liable to be quashed.".[Read Order].Decide in two weeks application by Pernod Ricard for liquor license: Delhi High Court to Delhi government