India probes Pernod, Diageo over Scotch tariff claims

Indian tax authorities are investigating whether Pernod Ricard and Diageo misclassified bulk Scotch imports to qualify for reduced duties under the India-UK trade pact; officials say the tariff cut does not cover bulk Scotch concentrates. Inspectors questioned Pernod executives and searched offices of Diageo’s Indian unit, United Spirits, as part of what it called an industry-wide exercise. Both companies say they are cooperating and have supplied requested information, while the probe reflects broader concerns among foreign businesses about tariff disputes in India.