Diageo India denies report of CEO being summoned by Delhi police in billing and discount practices case
Reuters had reported that the CEO of Diageo’s Indian business has been summoned by New Delhi anti-corruption police investigating billing and discount practices involving government agencies running liquor retail shops between 2017 and 2020 citing police sources.
- Jul 26, 2024,
- Updated Jul 26, 2024 2:06 PM IST
Diageo India denied a report of its CEO, Hina Nagarajan, being summoned by Delhi police in a billing and discount practices case. The company has termed the report ‘grossly misleading and distorting facts’.
Reuters had reported that the CEO of Diageo’s Indian business has been summoned by New Delhi anti-corruption police investigating billing and discount practices involving government agencies running liquor retail shops between 2017 and 2020 citing police sources.
In its reply, Diageo India said, “This is to bring to your attention that a prominent news wire has published an article on July 25, 2024 titled, ‘Diageo India's CEO summoned by Delhi city police in liquor payments case’ which is grossly misleading, as it distorts facts pertaining to a routine information and fact-finding exercise being carried out by government authorities.”
The company claimed that it believes the same notice may have been sent to other manufacturers as well. “Such notices from regulatory authorities requesting information are usually addressed to the company head - this is a routine process,” it added.
Reuters had also reported citing a liquor industry source with direct knowledge of the matter that the Delhi investigation concerned how companies like Diageo India supplied liquor to government agencies which ran retail shops, and how those agencies sometimes offered early payments to suppliers who offered discounts.
The police is investigating whether there was any wrongdoing in this process and has called the United Spirits CEO as a witness, the source added.
The July 4 police notice asked Nagarajan to explain “whether the discount given to the corporations (government agencies) was in accordance with excise policy,” the document showed, Reuters reported.
The company in its explanation said that this notice requires information to be submitted by a representative for the company, pertaining to its operations between the period of 2017 and 2020, and not specifically from the Chief Executive Officer. “We are cooperating with the authorities as we have always done. Diageo India has always maintained the highest standards of regulatory compliance,” it said.
Diageo owns about 56 percent of United Spirits, which is also known as Diageo India.
Diageo India denied a report of its CEO, Hina Nagarajan, being summoned by Delhi police in a billing and discount practices case. The company has termed the report ‘grossly misleading and distorting facts’.
Reuters had reported that the CEO of Diageo’s Indian business has been summoned by New Delhi anti-corruption police investigating billing and discount practices involving government agencies running liquor retail shops between 2017 and 2020 citing police sources.
In its reply, Diageo India said, “This is to bring to your attention that a prominent news wire has published an article on July 25, 2024 titled, ‘Diageo India's CEO summoned by Delhi city police in liquor payments case’ which is grossly misleading, as it distorts facts pertaining to a routine information and fact-finding exercise being carried out by government authorities.”
The company claimed that it believes the same notice may have been sent to other manufacturers as well. “Such notices from regulatory authorities requesting information are usually addressed to the company head - this is a routine process,” it added.
Reuters had also reported citing a liquor industry source with direct knowledge of the matter that the Delhi investigation concerned how companies like Diageo India supplied liquor to government agencies which ran retail shops, and how those agencies sometimes offered early payments to suppliers who offered discounts.
The police is investigating whether there was any wrongdoing in this process and has called the United Spirits CEO as a witness, the source added.
The July 4 police notice asked Nagarajan to explain “whether the discount given to the corporations (government agencies) was in accordance with excise policy,” the document showed, Reuters reported.
The company in its explanation said that this notice requires information to be submitted by a representative for the company, pertaining to its operations between the period of 2017 and 2020, and not specifically from the Chief Executive Officer. “We are cooperating with the authorities as we have always done. Diageo India has always maintained the highest standards of regulatory compliance,” it said.
Diageo owns about 56 percent of United Spirits, which is also known as Diageo India.