The Punjab State Agricultural Marketing Board (Mandi Board) has issued a recovery notice of Rs 116.25 crore to United Breweries for alleged evasion of market fee and rural development fund (RDF) on procurement of barley from outside Punjab. Market Committee secretary Johny Garg confirmed the demand of Rs 116,25,28,199 against the company.
Barley procurement triggers fee liability
According to Garg, United Breweries procured barley from Haryana, Rajasthan, Gujarat and other states for producing malt used in beer and liquor manufacturing. Barley is a notified agricultural commodity under the Punjab Agricultural Produce Markets framework, making its procurement liable for market fee and RDF.
The company was required to pay market fee and 3 per cent RDF on barley procured from outside Punjab. The assessment covers the period from April 1, 2020, to March 31, 2026.
Breakdown of the Rs 116.25 crore demand
The assessment reveals that the market fee payable for the period is Rs 9.34 crore, with an equal amount of Rs 9.34 crore assessed as RDF. Additionally, a penalty of Rs 93.46 crore and interest of Rs 13.44 crore have been imposed, bringing the total demand to Rs 116.25 crore.
Garg said the assessment was prepared after examining purchase documents submitted by the company over the past four months.
United Breweries disputes the notice
United Breweries has disputed the assessment, calling the demand arbitrary and factually and legally incorrect. The company stated it would challenge the assessment before the appellate authority and pursue all available legal remedies. It added that any financial impact would be limited to the amount specified in the demand notice.
