Some popular biryani outlets in Hyderabad have come under the Income Tax radar. Following raids in November last year, the Income Tax Department’s investigation indicates widespread financial irregularities at these outlets. The investigation has now reportedly uncovered a suspected tax evasion network involving approximately ₹70,000 crore in the food and beverage sector across the country since the 2019-20 financial year.
Officials are also investigating possible manipulation of billing software and digital payment trails, including UPI transactions routed through third-party accounts. Further action, including tax demands, penalties, and potential litigation, is expected after the data analysis and verification process is completed.
On November 18 and 19, 2025, Income Tax officials conducted a city-wide search operation, targeting Hyderabad’s well-known food chains Pista House, Shah Ghaus Cafe, and Mehfil. These chains operate multiple outlets in Hyderabad, other Indian cities, and abroad, including Dubai.
Nearly 50 Income Tax teams conducted searches at approximately 15 key locations in Hyderabad. The searches were not limited to restaurant premises; they also included the homes of the chairman, directors, and other key management staff associated with the hotel group.
Sources say that following the raids and the evidence gathered, officials are investigating allegations of suppressed sales, financial irregularities, and unaccounted income, and preliminary investigations suggest that the three chains together generate business worth hundreds of crores annually. During the raids, investigators reportedly seized around ₹6 crore in cash and collected digital records, billing data, and financial documents for further investigation.
What initially appeared to be a routine tax verification operation later escalated into a much larger investigation. Authorities reportedly analyzed massive volumes of digital billing data, amounting to tens of terabytes, to track discrepancies between declared revenue and actual transactions.
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