An Indian court has rejected Pernod Ricard’s plea to sell its products in New Delhi, an area that was previously a key market for the spirits giant.

The news follows a long legal battle between Pernod and officials in the Indian capital, who claim that the spirits business illegally colluded with retailers to boost its market share.

For the past three years, as the liquor policy investigation has continued, all Pernod brands, including Absolut Vodka and Chivas Regal, have not been sold in the city.

Last week, a judge once again refused Pernod’s request for a liquor licence, commenting that the company was “ineligible” because of the investigation.

At the same time, the company is also battling a demand from the Indian tax authorities to pay back $314 million in taxes on some of its Scotch exports.

Earlier this week, Indian investigators concluded that Pernod had withheld information about the age and composition of its Scotch whisky imports to hide their true value and pay lower tariffs.

They alleged that Pernod has undervalued its bulk Scotch concentrate imports by 67.49%.

The maker, however, said that it was not given access to key pricing data. It has rejected all suggestions of wrongdoing and maintained that it has been fully compliant in addressing the matter.