Diageo challenges Indian rum sales ban in court, says due process not followed

Regulation
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Summary · why it matters

British spirits giant Diageo has argued in court that due process was not followed when a popular rum brand was banned from sale in India. Its subsidiary United Spirits contends that the food safety officer who issued the ban on McDowell's No.1 Celebration Matured XXX Rum, manufactured in Maharashtra, lacked legal authority and bypassed proper procedure by using a food analyst's report. India's food safety authority began industry consultations on flavouring label regulations after the ban, and Diageo argued that continuing the prohibition is premature and causes commercial harm. The Bombay High Court heard the matter on the 10th but declined immediate relief, directing the federal government to respond by August 19.

Impact on stocks 1

Consumer Staples · 1 stocks
Diageo PLC
DGE
▼ NegativeRegulationrelevance

Diageo's subsidiary faces a ban on its rum brand in India, with court declining immediate relief.

Off-coverage companies 1

United Spirits LimitedPrivate▼ Negative
Regulationrelevance

United Spirits' product banned in India, legal challenge ongoing, causing commercial harm.