Bira 91 Staff Knock on Govt’s Door over Unpaid Dues, Seek Forensic Audit

A group of current and former employees of B9 Beverages Ltd, the company that operates the beer brand Bira 91, has written to multiple central and Delhi state government departments, seeking urgent intervention over alleged large-scale financial irregularities, statutory defaults, and prolonged non-payment of dues.

“Over 600 families associated with the company are suffering severe financial hardship due to prolonged non-payment of salaries and statutory dues. The situation has reached a critical level, impacting basic living needs, children’s education, medical expenses, and household obligations,” the letter seen by Outlook Business read.

The employees have accused the company’s management of withholding salaries for over seven months, failing to clear full and final settlements of laid-off staff, and not depositing deducted TDS and PF contributions with the government for more than a year.

“Estimated unpaid TDS ≈ ₹50 crore, a serious offence under the Income Tax Act, 1961. It can be validated by authorities as recent audits are not filed. PF contributions not deposited since April 2024. Employees are unable to withdraw PF due to non-deposits, violating the EPF & Miscellaneous Provisions Act, 1952,” it alleged.

Outlook Business spoke to at least seven former employees, including three individuals who were among those who sent the letter to government authorities, seeking intervention in the matter. All of them have independently confirmed the details.

However, the company didn’t respond to a query on the matter.

Additionally, the group of over 250 employees also alleged that the company failed to maintain medical insurance, leaving staff and families without coverage during emergencies. Other dues include unpaid bills to pantry, housekeeping staff, and MSME vendors for several months, with multiple cheques reportedly dishonoured, which invokes provisions under Section 138 of the Negotiable Instruments Act.

The company’s audit for FY25 is yet to be filed, even as its outstanding liabilities are estimated to be between ₹1,400 crore and ₹1,500 crore, according to the letter. This includes ₹950 crore in debt, ₹150 crore in unpaid statutory dues, ₹300 crore owed to vendors, and over ₹50 crore in pending employee payments.

Despite the mounting financial stress, the employees have alleged that there has been no clear communication or corrective action from the company’s leadership and CEO Ankur Jain.

“Director remuneration hiked significantly in FY24, despite financial distress. ₹140 crore allocated for marketing while statutory and employee dues remain unpaid. A forensic audit is urgently required to validate these discrepancies,” the letter further alleged.

The employees have urged the government to immediately launch an investigation into B9 Beverages Ltd, freeze personal assets of defaulting directors to secure employee and government dues, and directed the company to release pending salaries along with the statutory dues immediately.

They also demanded criminal and regulatory proceedings against responsible directors and officers.

The Beer Café Slips from Bira’s Grip

B9 Beverages Ltd has lost control of its pub business, The Beer Café. Its largest shareholder, Kirin Holdings of Japan, and its lender, Anicut Capital, invoked pledged shares held as collateral. The development follows the Indian craft beer maker’s ongoing battle with heavy losses, rising debt, and a severe cash crunch.

Kirin Holdings and Anicut Capital have jointly taken control of shares in BTB (Better Than Before), the entity that runs The Beer Café chain of 42 outlets along with other F&B ventures. This restructuring move ends Bira’s ownership in BTB, marking a full transfer of control to the investors.

"The recent ownership change has no impact on day-to-day operations or consumer experience. In fact, for some months there have been no Bira 91 supplies, so the brand does not currently appear on the menu — and our guests have no particular association between The Beer Café and Bira 91," Rahul Singh, CEO of The Beer Café told us.

He also clarified that all operations, including vendor payments, salaries, and expansion plans, will continue as normal.

Kirin Holdings holds about 20.1% stake in B9 Beverages, while Peak XV Partners owns around 14.6%. Jain and his family collectively control nearly 17.8%, with the rest distributed among smaller investors and family offices.

B9 Beverages had acquired BTB (Better Than Before) in 2022 through an all-stock deal. The subsidiary accounts for nearly 35% of the company’s overall revenue and operates a diverse portfolio of hospitality and beverage brands, including The Beer Cafe, Bira 91 Taprooms, Thrsty (a cloud bar), Instacrave (a cloud kitchen), and Burger Brewery.

Currently, Bira 91 has been undergoing financial pressure. In FY24, the beer company reported a net loss of ₹748 crore on revenue of ₹638 crore. It also had a negative cash flow of ₹84 crore. The company’s total losses reached ₹1,904 crore, and its liabilities were higher than assets in 2024. Bira 91’s sales volumes also witnessed a significant drop to 6-7 million cases in FY24 from 9 million in the previous fiscal year.

The company’s auditor, earlier this month, reported that Bira has lost its entire net worth as accumulated losses rose to ₹2,117.98 crore by the end of March 2024, compared to ₹1,473.01 crore in FY23. “The Company is exposed to market risk, credit risk, and liquidity risk, which may impact the fair value of its financial instruments”.

Last month, over 250 employees wrote to B9 Beverages’ board and major investors, Japanese beverage firm Kirin Holdings and Peak XV Partners, seeking a “leadership change”, citing delays in salary and reimbursement payments.