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Telangana's ₹3,700 Cr Liquor Dues Risk Bad Debt, Industry Says
Three industry bodies say Telangana's new 15-day payment system with a 2-2.75% discount could let ₹3,700 crore in older dues turn into bad debt.
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Three industry bodies that sell more than 80% of India's liquor, beer, and wine have told the Telangana government its new payment system risks turning old bills into bad debt.
The Brewers Association of India, the International Spirits and Wines Association of India, and the Confederation of Indian Alcoholic Beverage Companies flagged the issue in a letter to the state government. The Telangana State Beverage Corporation (TGBCL) started paying suppliers within 15 days of delivery starting June 1. The catch: the state deducts a 2% to 2.75% early-payment cash discount from each invoice.
The industry groups said the cash discount was part of the original tender conditions. It was meant to be exercised at the supplier's request, not the buyer's. Making it a mandatory deduction violates standard accounting practice, the associations argued.
The bigger problem sits behind the new payment terms. The state still owes suppliers more than ₹3,700 crore for supplies made between December 2025 and April 2026. The state has started paying some recent dues, the associations acknowledged. Those old arrears remain unpaid.