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Anheuser-Busch InBev has denied allegations of tax evasion in India after authorities banned the company from selling its beers in New Delhi for three years.

New Delhis ban affects A-B InBev brands including Corona

New Delhi's ban affects A-B InBev brands including Corona

A government official confirmed to just-drinks the banning order was made by the excise department of Delhi state. The ban relates to an August 2016 inquiry into beer bottles manufactured by SABMiller that were found to have duplicate barcodes. 

Responding to the allegations, A-B InBev said it has discontinued its relationship with the Delhi warehouse that handled the bottles and is "taking steps to enhance our systems".

"We deny the allegations set out in this order and look forward to presenting our views in full cooperation with the excise appellate process," a spokesperson said.

The banning order, which came into effect this week, affects brands including Budweiser, Corona, Hoegaarden and Stella Artois. A-B InBev beer bottles are still being sold in Delhi shops, with the ban only covering new supplies.

The Delhi government said that A-B InBev, through its 2016 acquisition of SABMiller, assumes legal liability for SABMiller's actions.

Authorities allege that multiple bar codes were made intentionally to avoid local excise duty, which is currently levied at around 150%. As per tax regulations in India, every bottle of alcohol must have a unique barcode that is electronically tracked at every stage of transport to final retail sale.

Reuters, which first reported the ban, said another order last week by Delhi city authorities called for two of A-B InBev's warehouses to be sealed. Reuters said a city official confirmed that the sealing had already been completed.

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