Spirits group Diageo’s Indian unit has submitted financial documents sought by New Delhi anti-corruption police in an investigation related to billing and discount practices involving city agencies, a source familiar with the matter said.
Hina Nagarajan, the CEO of Diageo’s Indian unit, United Spirits, was summoned to appear before New Delhi police on July 26 in a case that relates to the company’s supply of liquor to government agencies running alcohol shops, and payments received from the city between 2017 and 2020.
Nagarajan, who is also a member of Diageo’s global executive committee, was asked to appear in person or through company representatives and to provide several documents related to company sales.
Nagarajan did not appear before police but after the July notice, Diageo through company representatives submitted many of the documents sought from the three-year period, said the source, who declined to be named due to a lack of authority to speak to media.
The documents submitted included certain bank statements, records of financial dealings with the Delhi city agencies to which liquor was supplied and some agreements signed with them, the source added.
Diageo India and Delhi anti-corruption police did not respond to repeated requests for comments from Reuters.
The company has previously called the Delhi case a “routine information and fact-finding exercise” and said it was cooperating with the authorities. The company added it believed police notices may have been sent to other manufacturers.
The Delhi investigation concerns how companies like Diageo India supplied liquor to government-run shops, and how those agencies sometimes offered early payments to suppliers that offered discounts.
Police are investigating whether there was any wrongdoing in this process and if discounts given by companies were in line with liquor laws. Police had called the Diageo India CEO as a witness in the matter.
New Delhi city rules mandate all liquor retail shops to be run only by government agencies.
The Indian capital is a major market for premium liquor brands, more so for Diageo as its main rival, France’s Pernod Ricard, has been unable to retail its products since late 2022 due to allegations of wrongdoing it faces in another investigation.
Euromonitor estimates Diageo, the world’s biggest spirits maker which sells Johnnie Walker Scotch whisky and Smirnoff vodka, is also India’s largest with a 19% market share by volume in the US$35 billion market.
