THIRUVANANTHAPURAM: Bevco will receive back Rs 1,000 crore with interest to unfreeze the bank account that was frozen by the Income tax authorities due to falsification of income figures – the preliminary estimate being 1,150 crores. Already, 748 crores have been received.

This infusion of funds will come as a relief to the government, which is grappling with financial stress. Bevco's outstanding retail liabilities can also be settled. It was the efforts of ADGP Yogesh Gupta, who assumed the role of Chairman and MD of Bevco in 2020-21 after being on central deputation, that prevented a substantial loss.

In 2019, Bevco's bank account was frozen on the grounds of irregular income tax returns for the financial years 2014-15 to 2018-19. This disruption affected Bevco's day-to-day transactions, including payments to liquor companies. The 1,000 crore rupees held by the Income Tax Department placed Bevco in dire financial straits. Bevco's 270 foreign liquor retail outlets, sales tax owed to the government and flood cess were classified as income and the corresponding taxes needed to be paid. Under Yogesh Gupta's leadership, a petition was filed in the Supreme Court against the perceived injustice by the Income Tax Department. The Supreme Court directed a hearing to consider Bevco's side. The situation took a positive turn when Bevco approached the income tax authorities again with accurate figures.

The recovery of the lost money can be attributed to Yogesh Gupta's operational excellence, as he holds CA and MBA degrees in addition to being an IPS officer. Bevco suffered a loss of 248 crores in the fiscal year 2020-21 due to the havoc caused by COVID-19. However, under Yogesh Gupta's leadership, the company turned the tide in 21-22, achieving a profit of 6 crores and further improved to a profit of 46 crores for the fiscal year 22-23. During Gupta's tenure as CMD from 2007 to 2011, Supplyco which had been incurring losses underwent a transformation and became profitable.