Bira 91 Employees Appeal to Government Over Unpaid Salaries and Financial Irregularities

A group of current and former employees of B9 Beverages Ltd is the company behind the popular beer brand Bira 91, has approached several government departments, asking for help over non payment of salaries and suspected financial misconduct within the company.

Employees Facing Severe Financial Trouble

In a letter sent to the central and Delhi state government, the employees said that over 600 families have been struggling because of unpaid salaries and statutory dues for months. Many employees said they are finding it difficult to pay for basic needs, children’s education, and medical bills. The letter claims that salaries have been pending for more than seven months, while full and final settlements of laid-off staff remain uncleared. It also alleges that tax (TDS) and Provident Fund (PF) deductions were not deposited with the government for over a year. According to the letter, unpaid TDS could be around ₹50 crore, and PF deposits have been missing since April 2024, which is a serious legal violation under the Income Tax Act, 1961 and the EPF & Miscellaneous Provisions Act, 1952.

Unpaid Vendors, Dishonoured Cheques, and No Medical Cover

The employees further claimed that medical insurance policies for staff and their families have lapsed due to non-payment by the company. Even pantry and housekeeping staff and MSME vendors have not been paid for several months. Some vendors reported that company cheques were dishonoured, which is punishable under Section 138 of the Negotiable Instruments Act.

Massive Debts and Unfilled Audit Reports

As per the employees’ letter, B9 Beverages has not yet filed its FY25 audit report. They estimate the company’s total liabilities to be between ₹1,400 crore and ₹1,500 crore, including ₹950 crore in debt, ₹150 crore in statutory dues, ₹300 crore owed to vendors, and ₹50 crore in unpaid employee payments. Despite the financial crisis, the employees alleged that the management increased director salaries in FY24 and spent around ₹140 crore on marketing, instead of clearing employee and government dues.

The employees have urged the government to launch a forensic audit of the company’s finances, freeze personal assets of directors, and ensure that pending salaries and dues are released immediately. They also called for criminal and regulatory action against those responsible for the alleged irregularities.

Bira 91 Loses Control of The Beer Café

In another major development, B9 Beverages has lost ownership of its pub chain, The Beer Café. Its investors Kirin Holdings (Japan) and Anicut Capital have taken control of BTB (Better Than Before), the company that manages The Beer Café’s 42 outlets and other food and beverage ventures. This shift happened after the investors invoked pledged shares due to Bira 91’s ongoing financial troubles and rising debt. Rahul Singh, CEO of The Beer Café, confirmed that the brand will now operate independently. He said that Bira 91 beer is no longer supplied or listed on their menu and that all vendor payments, salaries, and operations will continue smoothly under the new ownership.

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