Liquor Bodies Urge Telangana to Clear Rs 3725.73 Crore in Pending Dues

On Friday, June 12, 2026, three leading alcoholic beverage industry associations in Hyderabad urged the Telangana government to clear Rs 3,725.73 crore in pending dues. The associations also voiced serious concerns over a newly introduced payment mechanism that deducts cash discounts from their current supplies.

The three organizations representing the sector are the Brewers Association of India (BAI), the International Spirits and Wines Association of India (ISWAI), and the Confederation of Indian Alcoholic Beverage Companies (CIABC). Together, these associations account for more than 80 percent of the total liquor, beer, and wine sold across India.

According to the associations, the state government has failed to clear payments for a significant period. In a joint letter addressed to the government, the groups stated that payments have only been cleared for sales made up to the first week of December 2025. This has resulted in outstanding dues of Rs 3,725.73 crore accumulated between the first week of December 2025 and the first week of April 2026.

The industry bodies also strongly objected to a new payment mechanism implemented by the government on June 1, 2026. Under this system, the government has started clearing payments for alcoholic beverages supplied to the Telangana State Beverages Corporation (TGBCL) in May 2026 within 15 days, but only after deducting an early payment cash discount ranging from 2 percent to 2.75 percent.

In their joint letter, the associations described the government's unilateral action to deduct these early payment discounts on current supplies as disturbing. They argued that the move goes against the established principles of normal commercial transactions.

Furthermore, the associations warned that the new discount deduction mechanism is fraught with non-compliance issues regarding accounting standards and is highly likely to face scrutiny by auditors.