Tax Raids on Biryani Chains Uncover ₹70,000 Crore Evasion
Tax Raids on Biryani Chains Uncover ₹70,000 Crore Evasion
Nationwide probe centered on Hyderabad biryani chains uncovers large-scale billing suppression, hinting at ₹70,000 crore tax evasion across India.
Hyderabad-based biryani chains sit at the heart of a widening tax-evasion probe. In November 2025, the Income Tax Department carried out coordinated raids at 15 outlets and the residences of senior managers across three popular brands — Pista House, Shah Ghouse and the Mehfil Group — as part of a preliminary inquiry into suspected irregularities. The operation focused on identifying unaccounted income and irregular billing practices tied to the food sector.
Officials say the initial work led to a deeper audit of billing software, bank transactions and UPI payment trails, with investigators collecting digital devices, accounting records and financial documents. The material seized reportedly formed the basis for a nationwide assessment of turnover suppression, with preliminary estimates indicating suppressed sales since 2019-20 could total at least ₹70,000 crore. Of this, Andhra Pradesh and Telangana are estimated to account for more than ₹5,000 crore.
Regional details show the scale extends beyond a single city, underscoring systemic issues in how revenue is recorded in the hospitality industry. The Income Tax Department has not issued an official statement on the findings so far.
Industry watchers say the case highlights the growing role of data analytics in enforcement, with analysts reviewing tens of terabytes of data from pan-India billing software to detect patterns of under-reporting and cash-deletion practices. As the probe expands, restaurateurs and consumers alike await regulatory clarity and potential reforms in how billing, cash handling and digital payments are monitored.
