Diageo files financial documents in Delhi Police probe, source says By Reuters

By Aditya Kalra

NEW DELHI (Reuters) – The spirits group Diageo The India unit ( LON: ) has submitted financial documents requested by New Delhi’s anti-corruption police in an investigation into billing and discounting practices involving city agencies, a source familiar with the matter said.

Hina Nagarajan, the CEO of Diageo’s India unit, United Spirits, was summoned to appear before the New Delhi police on July 26 in the case relating to the company’s supply of liquor to government agencies that run liquor stores. alcohol and payments received from the city between 2017 and 2020. .

Nagarajan, who is also a member of Diageo’s global executive committee, has been asked to appear in person or through company representatives and provide several documents related to the company’s sales.

Nagarajan did not appear before police, but after the July announcement, Diageo through company representatives submitted many documents that were sought from the three-year period, said the source, who declined to be named because he was not authorized to speak. with the press.

The documents presented included certain bank statements, records of financial transactions with Delhi city agencies to which liquor was supplied and some agreements signed with them, the source added.

Diageo India and Delhi’s anti-corruption police did not respond to repeated requests for comment from Reuters.

The company previously called the Delhi case “a routine fact-finding and fact-finding exercise” and said it was cooperating with authorities. The company added that it believes the police notices may have been sent to other manufacturers.

The Delhi probe concerns how companies such as Diageo India supply liquor to government-run stores and how those agencies sometimes offered advance payments to suppliers who offered discounts, Reuters reported last month.

Police are investigating whether there was any wrongdoing in the process and whether the discounts given by the companies were in line with liquor laws. The police has called the CEO of Diageo India as a witness in the matter.

New Delhi city rules require all liquor retail outlets to be run by government agencies only.

India’s capital is a major market for premium liquor brands, more so for Diageo than its main rival, the French company. Pernod Ricard (EPA: ), has been unable to sell its products at retail since the end of 2022 because of allegations of wrongdoing it faces in another investigation.

Euromonitor estimates that Diageo, the world’s largest spirits maker that sells Johnnie Walker Scotch whiskey and Smirnoff vodka, is also the largest in India, with a 19 percent market share by volume in the $35 billion market. dollars.