How probe against Hyderabad's top Biryani chains unearthed Rs 70,000 crore suspected fraud nationwide
Nearly 50 Income Tax teams reportedly covered around 15 key premises across Hyderabad. The searches were not limited to restaurant outlets; residences of chairpersons, directors and senior management personnel associated with the groups were also examined.
Some of Hyderabad’s most popular biryani outlets have come under the scanner of the Income Tax Department following extensive search operations conducted in November 2025. Preliminary findings indicate large-scale financial irregularities, prompting what officials describe as a far-reaching investigation into suspected tax evasion within the food and beverage sector.
On November 18 and 19 last year, Income Tax officials carried out coordinated searches across the city targeting well-known food chains including Pista House, Shah Ghouse Cafe and Mehfil. These brands operate multiple outlets not only in Hyderabad but also in other Indian cities and overseas locations, including Dubai.
Nearly 50 Income Tax teams reportedly covered around 15 key premises across Hyderabad. The searches were not limited to restaurant outlets; residences of chairpersons, directors and senior management personnel associated with the groups were also examined.
Sources said that evidence gathered during the raids points to alleged suppression of sales, financial discrepancies and unaccounted income. Initial assessments suggest that the three chains collectively generate annual revenues running into several hundred crores of rupees.
Rs 6 crore cash, digital record and bills seized
During the operations, officials allegedly seized approximately Rs 6 crore in cash. In addition, large volumes of digital records, billing data and financial documents were collected for further scrutiny.
What began as a routine tax verification exercise reportedly escalated into a major probe after investigators detected discrepancies between declared revenues and actual transactions. Officials are said to have conducted large-scale analysis of billing data amounting to tens of terabytes to track variations in reported sales figures.
Rs 70,000 crore tax evasion suspected
The investigation has now reportedly widened beyond Hyderabad. Authorities are examining a suspected tax evasion network in the food and beverage sector that may be worth nearly Rs 70,000 crore nationwide since the 2019–20 financial year.
Investigators are also probing possible manipulation of billing software and digital payment trails, including UPI transactions allegedly routed through third-party accounts.
Further action, including tax demands, penalties and potential prosecution, is expected once data analysis and verification processes are completed. The recent findings are based on documents and digital evidence seized during the raids.