Many popular biryani outlets of Hyderabad on income tax radar

Hyderabad: Some popular biryani outlets of Hyderabad have come under the income tax radar. After the raids in November last year, the Income Tax Department’s investigation is indicating that large scale financial irregularities have been found in these italets. The investigation has now allegedly revealed a suspected tax evasion network of around Rs 70,000 crore across the country in the food and beverage sector from the 2019-20 financial year. Authorities 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 possible litigation, is expected once the data analysis and verification process is complete.

This information came to light during income tax investigation

On 18 and 19 November 2025, Income Tax officials conducted a joint search operation across the city, in which searches were conducted at Hyderabad’s well-known food chain Pista House, Shah Gaus Cafe and Mehfil. This chain also runs several outlets in Hyderabad, other Indian cities and abroad including Dubai.

Around 50 Income Tax teams conducted investigations at around 15 specific places in Hyderabad. The searches were not limited to restaurant locations; Rather, it was also done at the homes of chairman, director and other special management staff associated with the hotel group.

Outlets do business worth hundreds of crores

Sources say that after the raid and evidence collected, the authorities are investigating allegations of hidden sales, financial irregularities and unaccounted income and preliminary investigation shows that the three chains together do business worth hundreds of crores annually. During the raid, investigators reportedly seized around Rs 6 crore in cash and collected digital records, billing data and financial documents for further investigation.

What initially seemed to be a routine tax verification later turned into a much bigger investigation. Authorities reportedly analyzed huge volumes of digital billing data, amounting to tens of terabytes, to track the discrepancy between declared revenues and actual transactions.

Latest India News