French spirits group Pernod Ricard has put new Indian investments on hold due to long-running tax disputes with authorities on valuing liquor imports, according to two sources with direct knowledge and company letters seen by Reuters.

Its shares fell 1.8 per cent on the news, underperforming peers.

The world’s second-biggest spirits group said its legal wrangles have progressively worsened since they first started nearly 30 years ago, making it tough to do business and raising the prospect of a major financial hit.

The maker of Chivas Regal, Glenlivet Scotch whisky and Absolut vodka is lobbying Indian authorities, including Prime Minister Narendra Modi’s office, to resolve the matter.

“This ever-lasting litigation has been a big strain on our ease of doing business and has inhibited fresh investment by our group headquartered in Paris (France) for expansion of business in India,” Pernod wrote in a November 24 letter to Modi’s office.

“These disputes initially arose in 1994 in import valuation by the customs authority, have compounded year after year and are still ongoing.” Pernod’s stance casts a shadow on the growth of the company in a region it says is among its “key markets”.

It expects India and China, the world’s two most populous nations, to drive most of the alcoholic industry’s growth in the next decade.

India’s $20 billion alcohol market is set to grow 7 percent annually in the 2021-25 period, with whisky and spirits among favourites, IWSR Drinks Market Analysis says.

Pernod accounts for 17 percent of India’s alcohol market by volume, while Diageocommands a 29 per cent share.

Bengal, CII pact on jobs

The Bengal government’s labour department on Tuesday signed an MoU with CII to operate 15 model career centres leveraging CII’s industry connect.

The project aims to provide placement to 60,000 youth and career counselling and employability skills to over 1 lakh in three years.

Becharam Manna, the minister of state for labour, said: “This year the Bengal government’s focus is to facilitate jobs for the unemployed youth. Through this collaboration with CII, the department will ensure the supply of appropriately skilled manpower.”

“We are happy to partner with CII to ensure placement for the talented youths of Bengal.

“Through CII’s industry connect we are confident that we would be able to meet our chief minister’s vision to create employment opportunities in the state,” said Barun Kumar Ray, IAS, principal secretary in the labour department.