Billing discrepancies and discounts: Diageo’s Indian subsidiary has provided financial documents to New Delhi’s anti-corruption police as part of an investigation into billing and discounting practices involving city agencies, according to a source familiar with the matter.
Hina Nagarajan, chief executive of United Spirits, Diageo’s Indian unit, was summoned by Delhi Police on July 26 in connection with the company’s supply of liquor to government-run liquor stores and payments received from the city between 2017 and 2020.
Although Nagarajan, who is also a member of Diageo’s global executive committee, did not appear in person, company officials submitted numerous documents following the notice. The source, who spoke on condition of anonymity, revealed that these documents included bank statements, records of financial transactions with agencies in the city of Delhi and agreements related to the supply of liquor.
Neither Diageo India nor Delhi’s anti-corruption police responded to Reuters’ requests for comment.
Diageo India has previously described the investigation as a “routine information gathering and intelligence gathering exercise” and said it is fully cooperating with authorities. The company also indicated that police notices may have been sent to other manufacturers as part of the investigation.
Contours of the research
The investigation is focusing on the supply of liquor by companies such as Diageo India to government-run stores, and specifically examining whether discounts offered in exchange for advance payments complied with liquor laws. Nagarajan has been called as a witness in the case.
In New Delhi, liquor retailing is handled exclusively by government agencies, making the city a key market for premium spirits brands. This is especially important for Diageo, as its main competitor, France’s Pernod Ricard, has been unable to sell its products at retail since late 2022 due to other allegations of misconduct.
Euromonitor estimates that Diageo, the world’s largest spirits maker, known for brands such as Johnnie Walker and Smirnoff, has a 19 percent market share by volume in India’s $35 billion spirits market, making it the market leader.
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