A tax evasion probe into three well-known Hyderabad-based biryani chains has reportedly uncovered large scale manipulation of restaurant billing systems and undeclared revenue amounting to an estimated ₹70,000 crore across the food industry in the country.
The investigation, led by the city unit of the Income Tax Department, initially focused on suspected financial irregularities and unaccounted income at the three restaurant groups in Hyderabad.
Acting on these suspicions, in November 2025, the Income Tax Department conducted coordinated raids at 15 locations linked to Pista House, Shah Ghouse and the Mehfil Group of Restaurants as part of its preliminary inquiry into suspected tax irregularities. The searches covered multiple restaurant outlets as well as the residences of senior management personnel. 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 examination of billing software, bank transactions and UPI payment trails, which eventually pointed to alleged large-scale suppression of turnover.
Preliminary assessments indicate that suppressed sales from the financial year 2019–20 onwards could amount to at least ₹70,000 crore nationwide. Of this, Andhra Pradesh and Telangana are estimated to account for more than ₹5,000 crore.
The Income Tax Department has not issued an official statement on the findings so far.
Published – February 20, 2026 12:04 am IST
