Diageo (DEO) and other alcohol companies are seeking payment of unpaid dues totaling approximately $466 million from India's Telangana state, Reuters reported Thursday, citing industry sources.

Telangana allows liquor companies to supply only state-run wholesalers, which then sell to retailers, Reuters said, adding this means the companies have to rely on payments from Indian state governments.

Alcohol industry sources who spoke on condition of anonymity said Telangana owes total unpaid dues of about 40 billion rupees ($466 million) to whisky and beer companies, Reuters said.

Diageo did not immediately respond to a request for comment from MT Newswires.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)