DRI investigation: Pernod Ricard India ‘evaded’ Rs 612.72 ...Ricard India to the extent of Rs 9.41 crore, resulting in alleged duty evasion of Rs.14.72 crore. Pernod Ricard reported

Top News

Written by Khushboo Narayan | Mumbai | Published: January 3, 2018 1:18 am

Home Business Companies DRI investigation: Pernod Ricard India ‘evaded’ Rs 612.72-crore customs duty

DRI investigation: Pernod Ricard India ‘evaded’ Rs 612.72-crore customs dutyPernod Ricard reported 1 per cent sales growth in India during the nine months that ended March 31, 2017.

The Wall Street Journal - Official Site $12 for 12 Weeks

Page 1 of 13DRI investigation: Pernod Ricard India ‘evaded’ Rs 612.72-crore customs duty | The Indi...

1/3/2018http://indianexpress.com/article/business/companies/dri-investigation-pernod-ricard-india-e...

RELATED NEWS

Pernod Ricard India manufactures popular brands such as Royal Stag, Imperial Blue and Blenders Pride.

A probe by the Directorate of Revenue

Intelligence (DRI) has found that Pernod

Ricard India Pvt Ltd, the Indian arm of the

world’s second-largest spirits maker, has

allegedly evaded Customs duty of about Rs

612.72 crore in the last six years, sources told

The Indian Express.

The probe found, sources said, that Pernod

Ricard India allegedly undervalued imports

of bottled-in-origin products (drinks made

and bottled abroad) from a related firm

Pernod Ricard Gulf, Dubai. Some of the

bottled in origin products of Pernod Ricard

include The Glenlivet, Chivas Regal and

Ballentine’s, among others.

Pernod Ricard India and Pernod Ricard Gulf are both wholly owned subsidiaries of

Peri Mauritius Ltd.

Pernod Ricard India manufactures popular brands such as Royal Stag, Imperial

Blue and Blenders Pride. In India, it has over 45 per cent share of the spirits market

in terms of value.

Pernod Ricard India, sources said has already voluntarily deposited about Rs 48

crore against the total alleged liability of Rs 612.72 crore during the course of the

DRI probe.

DRI seizes foreign cigarettes worth Rs 6.3 crore

Custom agent held in duty evasion case dead in Ahmedabad

DRI detects ghost exports from JNPT, 10 Customs officers under the scanner



The official spokesperson of Pernod Ricard India declined to comment on the

findings of the DRI. The DRI investigation alleged that Pernod Ricard Gulf entered

into a distributor agreement with Pernod Ricard India in April 2006 to increase

sales.

Typically, Pernod Ricard Gulf procures bottled-in-origin products from several

brand owners and supplies it to Pernod Ricard India, which then sells it in India.

According to the agreement, Pernod Ricard India is required to incur expenses on

advertisement, marketing and sales promotion of the imported product with prior

approval of the Dubai firm.

The agency has alleged that the agreement mathematically stipulates the quantum

of funds required to be spent by Pernod Ricard India on advertisement and

promotion. It also stipulates the profits of Pernod Ricard India from their domestic

sales of imported products. Sources said while these expenses have been dictated

by the Dubai firm for its benefit, Pernod Ricard India has not included these costs

incurred on advertisement and marketing of the imported products while

determining the value of the imports.

This, according to the probe agency, has resulted in short payment of Customs duty

to the tune of Rs 598 crore.

“The transaction value between Pernod Ricard Gulf and Pernod Ricard India has

excluded the expenses pertaining to advertisement, marketing, and sales

promotion incurred by the Indian firm. Legally, in terms of the provisions of Rule

10 (1) (e) of the Customs Valuation (Determination of value of imported Goods)

Rules, 2007, all expenditure incurred by the buyer in India on behalf of the seller

located outside India, as a condition of sale, should be a part of the value of the

imported goods,” said a source.

Apart from this, the DRI has also alleged that a scrutiny of imports in relation to the

actual outward remittances has found undervaluation of imported goods by Pernod



Ricard India to the extent of Rs 9.41 crore, resulting in alleged duty evasion of

Rs.14.72 crore.

Pernod Ricard reported 1 per cent sales growth in India during the nine months

that ended March 31, 2017.

For all the latest Business News, download Indian Express App

FROM AROUND THE WEB

The Great Bitcoin Meltdown is ComingUnderGround Finance

What Americans With No Tickets In Three Years Might Not KnowEverQuote

Want A Gorgeous Head of Hair Again? Don't Use This Popular ProductVital Updates

7 Things That May Trigger DepressionHealth Central

Top Retirement Funds 2017 - Increase Your IncomeLocal.com

Why Doctors Will No Longer Prescribe Metformin (WATCH)healthnewstips.today



Man with Rs 7.56 lakh in fake Rs 2000 notes arrested, DRI suspects it to be smuggled from Bangaldesh

Your officer helped smuggle antiques: DRI to Punjab

MORE RELATED NEWS

TAGS: Directorate Of Revenue Intelligence

Recommended by

Find Out What Really Causes Psoriatic ArthritisYahoo! Search

Best & Worst Refinance Mortgage Companies of 2018Comparisons.org

Changing the Way You Age, Starting with Your CellsThe Hustle

Post Your CommentYour email address will not be published.

Your Comment

Characters Remaining: 1000

SIGN-IN Facebook Google Plus

Captcha here



MOST READ

SUBMIT

No Comments.



Dalit protests in Maharashtra: All your questions answered

Tiger Zinda Hai box office collection day 13: Salman Khan starrer all set to enter Rs 300 crore club

Tiger Zinda Hai box office collection day 12: Salman Khan film collects Rs 280.62 crore

Mumbai bandh highlights: Jignesh Mevani appeals for peace, says state govt must ensure rule of law



BEST OF EXPRESS

SponsoredMy brave 11 months old is fighting to live. Please help me save my Veera

Never acknowledged the existence of Arunachal Pradesh, says China

Cabinet nod for Rs 6,809-crore Zojila tunnel project connecting Jammu and Kashmir with Ladakh

Mamata Banerjee opposes triple talaq bill, Opposition says send to select committee

OpinionAt the root of insecurities of Marathas, Jats, Patels lies lack of education,

employability

OpinionToothless bill criminalising triple talaq is meant only to score political points



Silversea® Luxury CruisesSmall Luxury Ships, SpaciousOcean View Suites & True All-Inclusive Experience.

BUZZING NOW

TOP NEWS

EntertainmentAnushka Sharma and Virat Kohli's Cape Town diaries in photos

EntertainmentSuper Deluxe: Samantha Akkineni as Vaembu is absolutely kickass

EntertainmentSuhana Khan is a vision in her latest photo with daddy Shah Rukh Khan

TrendingMoscow-based artist Evgeny Ches charms with his 'cellograffiti' in Russia's woodlands

TrendingFor the love of Tamil culture, this Japanese couple had their dream wedding in Madurai

Cities



Dalit protests in Maharashtra: All your

questions answered

SponsoredSimple financial tips for the newly married

Jammu: BSF jawan killed as Pakistan violates ceasefire yet again in Samba sector

Kumar Vishwas vs Arvind Kejriwal: Fissures in AAP after infighting over Rajya Sabha nominations

SportsI just want to play my A game: Murali Vijay

SportsIndia's best chance to amend away failures is now

LifestyleDoing it in style: Priyanka Chopra's London vacation outfits are perfect for a winter

wonderland

LifestyleA retrospective providing a long overdue introduction to Natvar Bhavsar's works

TechnologyApple's battery replacement for iPhones: Price, who is

Page 10 of 13DRI investigation: Pernod Ricard India ‘evaded’ Rs 612.72-crore customs duty | The In...


JAN 03: LATEST NEWS

eligible and everything else to know

TechnologyFlipkart sale on mobiles: Top offers on Apple iPhone 8, Google Pixel 2, Mi A1 and

others

Palwal rampage: Accused undergoes surgery in Delhi, police unable to record statement

Digital economy: Par panel for law on data privacy

Virendra Dixit ashram: CBI registers 3 cases

Israel says Iran recruited Palestinian militants via South Africa

Don’t make a joke out of the country: Pakistan SC tells ISI



Ad

Both wallets contain the same 10 cards & cashVisit Site



The ExpressGroup The Indian Express The Financial Express Loksatta Jansatta inUth Ramnath Goenka Awards

Privacy Policy Advertise with Us Contact Us Subscribe

Copyright © 2018 The Indian Express [P] Ltd. All Rights Reserved



Documents

DRI investigation: Pernod Ricard India ‘evaded’ Rs 612.72 ...Ricard India to the extent of Rs 9.41 crore, resulting in alleged duty evasion of Rs.14.72 crore. Pernod Ricard reported