The alcoholic beverage industry has urged the Telangana government to clear pending dues of about ₹3,700 crore before enforcing a new early payment discount mechanism for supplies to the Telangana State Beverages Corporation Ltd (TGBCL).
The Brewers Association of India, International Spirits and Wines Association of India and Confederation of Indian Alcoholic Beverage Companies, which together represent companies accounting for more than 80% of liquor, beer and wine sales in India, have written to the state government opposing the move.
According to the associations, the government introduced the mechanism from June 1, under which payments for alcoholic beverages supplied in May are being released after 15 days after deducting a cash discount of 2% to 2.75%. They said the cash discount clause forms part of tender conditions but is meant to be exercised at the request of suppliers, not unilaterally by the buyer.
“It appears that the government has decided to proceed with its unilateral and arbitrary decision, seemingly driven by financial needs and the belief that it has the power to carry out any action because of its dominant position,” the alcobev bodies said.
The industry bodies said older undisputed dues for supplies from the first week of December 2025 to the first week of April 2026 remain unpaid. In their joint letter, they said payments had been cleared only for sales up to the first week of December 2025, while ₹3,725.73 crore was still pending.
Terming the move to settle current dues before older receivables as “very disturbing and against the principles of normal commercial transactions”, they argued it could create accounting and audit complications for companies. The associations also expressed concern that monthly payouts may be diverted towards recent supplies to avail the discount, leaving older dues unpaid and increasing the risk of receivables turning into bad debt.
The groups urged the government to release payments in chronological order and immediately clear outstanding dues. They also asked it not to implement any proposal that applies early payment deductions to current supplies while past payments remain pending.
