News

INDIA: Indian authorities question Pernod Seagram acquisition

Most popular

Pernod breaks boundaries with Chinese distillery

New Remy Cointreau CEO - just-drinks thinks

Interview - Pernod Ricard CFO Helene de Tissot

Pernod on its Chinese whisky project - Interview

just-drinks meets Asahi Europe's CEO - II

MORE
India's Directorate of Revenue Intelligence (DRI) has objected to the takeover of Seagram Manufacturing India by Pernod Ricard, the result of the Diageo/Pernod acquisition of Seagram last year, because of an alleged failure by Seagram to pay duties.

The problem stems back to a show cause notice issued to Seagram by the DTI in January that accused Seagram of mis-declaring and undervaluing bulk Scotch concentrates and evading customs duties of Rs38 crore ($8.4m) over a five year period.

In January, just-drinks.com reported that local estimates had calculated that although the total evasion amounted to Rs38 crore ($8.4m), taking into account the interest due, the 100% penal charges and a 25%-30% redemption fine, the company could face a bill of Rs100 crore ($22.2m).

The DTI has told its government that Seagram should not be allowed to transfer any assets until a decision is taken on the show cause notice. Sources in India say that the DTI fears that Pernod Ricard may take over Seagram's operations without taking over any of Seagram's liability.

A spokesperson for Seagram told just-drinks.com; "Seagram is working closely and in full cooperation with the Indian government and steps are being taken to satisfy all parties."

Companies: Pernod Ricard, Diageo

Related Content

"We're looking for brands that can bring new growth opportunities to the group" - just-drinks speaks...

Pernod Ricard reaps reward of China, India return - Analysis

Pernod Ricard reaps reward of China, India return - Analysis...

"Africa is Asia in 15 to 20 years from today" - just-drinks speaks to Pernod Ricard CEO Alex Ricard...

"The US is not all about Jameson and Absolut" for Pernod Ricard - Analysis...

Oops! This article is copy protected.

Why can’t I copy the text on this page?

The ability to copy articles is specially reserved for people who are part of a group membership.

How do I become a group member?

To find out how you and your team can copy and share articles and save money as part of a group membership call Sean Clinton on
+44 (0)1527 573 736 or complete this form..



Forgot your password?