Synopsis:
Tilaknagar Industries faces allegations of diverting ~Rs. 218 crore to a liquor syndicate via jewellery firms, with police claiming disguised gold transactions were used to convert legitimate revenue into black money.
During Tuesday’s trading session, shares of a leading Indian-Made Foreign Liquor (IMFL) manufacturer moved up by nearly 7.3 percent on BSE, after the company clarified on the liquor scam involving kickbacks of ~Rs. 218 crore in Andhra Pradesh.
At 11:14 a.m., the shares of Tilaknagar Industries Limited were trading in the green at Rs. 446.6 on BSE, up by around 7 percent, as against its previous closing price of Rs. 418.8, with a market cap of Rs. 8,656 crores. The stock has delivered positive returns of around 89 percent in the last one year, and has gained by over 25 percent in one month.
What’s the News
As per a few media reports, Tilaknagar Industries Limited has been named by Andhra Pradesh police in an alleged liquor scam involving kickbacks of ~Rs. 218 crore. The company is accused of channelling funds to a liquor syndicate through jewellery businesses.
Police claim that Tilaknagar Industries, a major liquor supplier to the Andhra Pradesh State Beverages Corporation Ltd (APSBCL), leveraged its strong market position to promote popular brands like Mansion House Brandy and Courrier Napoleon. During the period under investigation, the company reportedly earned around Rs. 1,472 crore from its dealings with APSBCL.
Authorities allege that nearly Rs. 218 crore in suspected kickbacks were calculated based on the volume and pricing of liquor supplied via APSBCL. Investigators claim that payments received from APSBCL were routed through a network of jewellery businesses—including Sri Jewels (Rs. 107.6 crore), Uday Jeweller Industries (Rs. 0.86 crore), Sona Chandi Jewellers (Rs. 3.53 crore), and Mangatrai Pearls, Gems & Jewels (Rs. 3.73 crore)—and converted into untraceable cash.
Police allege that Tilaknagar Industries routed a portion of its legitimate revenue to these jewellery firms, received gold in exchange, and passed it to syndicate operators. Officials say this process gave the appearance of lawful, GST-compliant transactions, while actually turning white money into black assets.
According to investigators, this reflects the liquor syndicate’s deep influence, forcing even established companies to channel their state-earned revenue through hidden gold transactions.
In its latest regulatory filings with the stock exchanges, Tilaknagar Industries Limited clarified that, so far, it has not received any official communication or notice from any regulatory authority or enforcement agency regarding the matter.
Financials & more
Tilaknagar Industries reported a significant growth in its revenue from operations, showing a year-on-year rise of around 13 percent from Rs. 359 crores in Q4 FY24 to Rs. 406 crores in Q4 FY25. Similarly, its net profit increased during the same period from Rs. 31 crores to Rs. 77 crores, representing an increase of about 148 percent YoY.
Tilaknagar Industries Limited is primarily involved in the business of manufacturing and sale of Indian Made Foreign Liquor (IMFL), with a diverse portfolio of brands in various liquor categories, including brandy, whisky, vodka, gin, and rum.
Written by Shivani Singh
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