An investigation into tax evasion in three well-known Hyderabad-based biryani chains has reportedly revealed widespread manipulation of restaurant billing systems and undeclared income of an estimated ₹70,000 crore across the country’s food industry.
The investigation led by the city-based Income Tax department initially focused on suspected financial irregularities and unaccounted income in three restaurant groups in Hyderabad.
Based on these suspicions, the Income Tax department conducted coordinated raids in November 2025 at 15 locations associated with Pista House, Shah Ghouse and Mehfil Group of Restaurants as part of its preliminary investigation into suspected tax irregularities. The inspections covered several restaurant establishments as well as the residences of senior management employees. During the operation, officials seized digital devices, accounting records and financial documents.
Sources said the material collected during these raids later formed the basis for a deeper probe into the invoicing software, banking transactions and UPI payment channels, which ultimately pointed to the alleged large-scale suppression of turnover.
Preliminary estimates suggest that suppressed sales could reach at least ₹70,000 crore nationally from FY 2019–20 onwards. Of this, Andhra Pradesh and Telangana are estimated to account for more than ₹ 5,000 crore.
The Income Tax Office has not yet issued an official statement on the findings.
Published – 20 Feb 2026 0:04 IST