Hyderabad: The Brewers Association of India, the International Spirits and Wines Association of India, and the Confederation of Indian Alcoholic Beverage Companies have objected to the Telangana government’s new payment system and requested clearance of old dues amounting to over Rs 3,700 crore.
The associations pointed out that although the cash discount is a part of the tender conditions, it is intended to be exercised at the request of suppliers, not from the buyer (government).
They noted that this practice is against standard accounting practices because the government has begun making payments for recent bills, while outstanding, undisputed dues of over Rs 3,700 crore for the period from December 2025 to April 2026 remain unpaid, a release from the liquor bodies said on Friday, June 12.
The associations maintain that settling newer dues before clearing older ones defies established commercial norms and could expose companies to serious scrutiny from auditors.
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In their joint letter to the government, the three associations said, “As per their records, as on date, payments have been cleared for sale up to the first week of December, 2025. However, payments are pending up to April this year to the tune of Rs 3,725.73 crore”.
“In light of the above, we find the proposed action by the government to start deducting early payment on current supplies very disturbing and against the principles of normal commercial transactions, and is fraught with non-compliance accounting standards, and subject to scrutiny by auditors,” they said.
The associations are also concerned that the government may divert its monthly payouts towards clearing new dues in order to earn the cash discount, while older outstandings continue to remain unpaid. Over time, this could result in legitimate receivables turning into bad debt, creating a massive financial burden and risk for the industry.
The alcoholic beverage industry has instead urged the government to release payments in chronological order and clear the old outstanding amounts immediately.
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