 "Bira 91 employees write to central government over salary, PF dues")
Employees of B9 Beverages, the parent of homegrown craft beer brand Bira91, have approached central government authorities over persistent issues including non-payment of salaries and provident fund (PF) and tax deducted at source (TDS) violations.
Employees allege seven months of unpaid salaries
Earlier this week, about 90 former and current employees of the company wrote an open letter addressed to the Ministry of Labour and Employment; the chairman of the Central Board of Direct Taxes (CBDT); the secretary, Ministry of Corporate Affairs; the chief labour commissioner (Central); the regional PF commissioner; and the Income Tax department.
“Over 600 families associated (current and past) with B9 Beverages are currently suffering severe financial hardship due to prolonged non-payment of salaries and statutory dues. The situation has reached a critical level, impacting basic living expenses, education of children, medical needs, and household obligations,” stated the letter, a copy of which Business Standard has reviewed.
In the letter, signatories pointed out that employees have not been paid for seven months, while the management has “repeatedly given false assurances with unfulfilled commitments of payment on multiple dates.”
Alleged ₹50 crore TDS not deposited with government
They further claimed that the company has not submitted TDS with the government, which was deducted from employee and vendor payments for several months.
“The estimated amount of unpaid TDS is approximately ₹50 crore, which is a serious offence under the Income Tax Act, 1961. Numbers can be validated by authorities as a recent audit is not filed,” the letter stated.
Further, PF contributions have not been deposited since April 2024, due to which employees are unable to withdraw PF amounts. The signatories said this violates the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952.
Non-payment of gratuity and vendor dues highlighted
The letter also highlighted that pantry staff, housekeeping staff, and the company’s MSME vendors have not been paid for months, alongside pending gratuity dues.
“Gratuity dues have not been cleared for employees who resigned, were laid off, or retired. This is a serious violation under the Payment of Gratuity Act, 1972, which mandates settlement within 30 days of an employee’s exit,” the letter stated.
“Non-payment of gratuity is a punishable offence in India and attracts penalties, including imprisonment and fines for defaulting employers,” it added.
₹1,400–1,500 crore liabilities, no functional office: letter
While the company’s audit for financial year 2025 (FY25) is yet to be filed, employees alleged that the company has massive outstanding liabilities.
“Huge outstanding liabilities of ₹1,400–₹1,500 crore, including ₹950 crore debt, ₹150 crore statutory dues, ₹300 crore vendor dues, and over ₹50 crore in employee dues,” the letter stated.
It also noted that the company currently has no functional office due to unpaid rent, and that chief executive officer Ankur Jain has made no formal communications regarding employee welfare or future operations.
Employees urge government to act
The signatories urged authorities to initiate an immediate investigation into B9 Beverages Ltd and freeze personal assets of defaulting directors to secure employee and government dues.
“We humbly request the government to direct the company to release pending salaries and statutory dues immediately and take necessary criminal and regulatory action against the responsible directors and officers,” they said in the letter.
Investors flag concerns over capital burn
The company’s investors — including PeakXV, Sofina, Sixth Sense, MUFG, Tiger Pacific, and Kirin Holdings — had earlier told Business Standard they were concerned about the company’s high capital burn rate and performance following a pre-emptive international foray.