Diageo submits financial documents in Delhi police investigation, source says

United Spirits

19/08/2024 24:30

(Repeats story from Sunday with no changes to text)
    By Aditya Kalra
       NEW DELHI, Aug 18 (Reuters) - Spirits group Diageo's
 DGE.L  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  UNSP.NS , was summoned to appear before New Delhi
police on July 26 in the case that relates to 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
documents that were 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, Reuters reported last month.
    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  PERP.PA , 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 $35 billion market.

 (Reporting by Aditya Kalra; Editing by Jamie Freed)
 ((aditya.kalra@thomsonreuters.com; @adityakalra;))