Some popular biryani outlets in Hyderabad are now under the Income Tax department’s radar. Following raids in November last year, the department’s investigation has indicated large-scale financial irregularities in these outlets.
The investigation revealed that a network of suspicious tax evasion worth approximately ₹70,000 crore has been operating across the food and beverage sector nationwide since the 2019-20 financial year. Officials state that signs of manipulation in billing software and digital payment trails have been found, including UPI transactions made through third-party accounts.
After the completion of data analysis and verification processes, strict action is expected from the department, including tax demands, penalties, and potential prosecution.
Income Tax Investigation Reveals
On November 18 and 19, 2025, the Income Tax department conducted extensive raids in Hyderabad. During this, well-known food chains in the city, such as Pista House, Shah Ghouse Cafe, and Mehfil, were also targeted. These food chains operate several outlets not only in Hyderabad but also in other Indian cities and abroad, including Dubai.
Approximately 50 Income Tax teams searched around 15 key locations in Hyderabad. The searches were not limited to restaurants; raids were also conducted at the residences of the chairman, directors, and other senior management staff of the associated hotel group.
Outlets Do Business Worth Hundreds of Crores
Sources indicate that after the raids and collected evidence, officials are investigating allegations of suppressed sales, financial discrepancies, and unaccounted income. Preliminary investigations suggest that the three chains combined conduct business worth hundreds of crores annually. During the raids, investigators reportedly seized approximately ₹6 crore in cash and collected digital records, billing data, and financial documents for further investigation.
What initially seemed like a routine tax verification later escalated into a much larger investigation. Officials reportedly analyzed a massive volume of digital billing data, up to tens of terabytes, to track discrepancies between declared revenue and actual transactions.