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Budweiser has been banned in Delhi for three years over allegations of tax evasion. The decision was taken after the state government completed a thorough investigation of beer maker SABMiller.

The investigation put forward observations where the company was found guilty of using duplicate barcodes on the bottles allowing the company to pay lower levies. AB InBev has denied all the allegations and claimed that it would appeal against the ban, Reuters reported.

The order also called for the sealing of two Ab InBev warehouses in Delhi which was completed on Tuesday. The company has been barred from selling fresh stock in the market.

[Representational image]Creative Commons.

AB InBev countered the government's decision by stating that the allegations were related to SABMiller prior to its takeover and claimed for a fair hearing after allowing the company to present its views in full cooperation with the excise appellate process.

An investigation brought out observations that there were bottles with the same barcode at a bar. However, the brewer argued the allegations quoting technical and clerical error in the barcode system. The government stated that it was reasonable to believe that the barcode tampering was a way of selling non-duty paid liquor.

Budweiser's parent company has a $7 billion beer market, making it the second-largest brewery seller contributing about 17.5 percent in the market share.