Pernod Ricard's Internal Probe: Six Sacked in Rajasthan over Payment Malpractices

Pernod Ricard, the French multinational beverage company, has recently concluded an internal investigation into alleged payment malpractices in India's Rajasthan state. The probe, triggered by a whistleblower complaint, has led to the sacking of at least six mid-level employees. This article delves into the details of the investigation, the alleged malpractices, and the potential implications for Pernod Ricard's operations in India.

The investigation, conducted by global consultancy firm EY and overseen by Pernod's India head of ethics and compliance, Kanika Bhutani, uncovered evidence of employees diverting company funds meant for trade discounts to retailers for personal use. The employees allegedly used improper documentation to facilitate this misappropriation of funds. The extent of the financial misappropriation involved in the malpractices remains unclear, as the sources did not provide a specific amount.

The internal controls and approval processes at Pernod Ricard appear to have been bypassed, allowing the employees to exploit weaknesses in the system for personal gain. The investigation found that certain employees in the sales and commercial teams were misusing funds typically meant to offer discounts to retailers who buy company brands. The whistleblower complaint, filed in October 2023, triggered the probe, leading to the sacking of at least six mid-level employees.

Pernod Ricard's global CEO, Alexandre Ricard, has previously stated that India is one of the company's "biggest growth engines." However, the company faces a range of compliance and regulatory challenges in the country, including a $250 million federal tax demand for allegedly undervaluing imports, two antitrust cases, and a ban on sales in New Delhi city due to allegations of money laundering. Pernod Ricard denies any wrongdoing in these cases.

Rajasthan, one of India's most populous states, is a critical market for liquor companies like Pernod Ricard. The Indian government estimates that Rajasthan's spending on alcohol per capita has grown three times between 2014 and 2023. The sacking of six employees in Rajasthan highlights the importance of maintaining ethical standards and internal controls within the company to prevent such malpractices in the future.



The internal probe and subsequent sacking of employees underscore the need for robust internal controls and oversight within multinational corporations operating in diverse markets. As companies like Pernod Ricard continue to expand their operations in India, maintaining a strong commitment to ethical practices and compliance with local laws will be crucial for their long-term success.



In conclusion, the internal investigation into payment malpractices in Rajasthan has led to the sacking of six employees at Pernod Ricard. The company must now focus on strengthening its internal controls and ensuring that its employees adhere to ethical standards to prevent similar incidents in the future. As India remains a key market for the company, addressing these challenges will be essential for maintaining its competitive position in the region.