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₹70,000 crore sales suppression? AI-facilitated probe into Hyderabad restaurants reveals massive tax evasion scam
AI-driven analysis uncovered Rs 70,000 crore in undeclared sales since 2019-20, with raids seizing Rs 6 crore cash and digital records from biryani chains.
- Published- February 20, 2026: The Income Tax Department city unit reportedly uncovered that sales worth at least Rs 70,000 crore have been hidden since the financial year 2019-20 after searches targeting Pista House, Shah Ghouse Cafe and Mehfil Group of Restaurants in Hyderabad.
- A routine tax verification exercise flagged discrepancies between declared revenues and transaction data, and investigators soon identified a commonly used restaurant billing software provider servicing over one and a half lakh restaurants.
- Tax teams analysed nearly 60 terabytes of billing data over six years and covered around 15 premises, seizing digital devices, records and Rs 6 crore , identifying around Rs 13,000 crore of deleted invoices.
- Authorities expect further tax demands, penalties and prosecution after verifying documents and digital evidence seized during raids, while the Income Tax Department has not issued an official statement yet.
- The case highlights digital billing infrastructure vulnerabilities exploited despite artificial intelligence and data analytics in tax enforcement, while several other digital billing platforms remain unexamined, prompting tighter regulatory oversight of digital accounting systems.
16 Articles
16 Articles
The Income Tax Department, conducting an investigation under Section 133A of the Income Tax Act, examined approximately 60 terabytes of transactional data spanning six fiscal years, from 2019-20 to 2025-26. The investigation revealed that the relevant billing software platform is used by over 100,000 restaurants across the country, covering approximately 10 percent of India's restaurant market.
Biryani Billing Scam Worth INR 70,000 Crore? Income Tax Probe Finds Massive Sales Suppression by Hyderabad Restaurant Chain Across India | 📰 LatestLY
What began as a routine scrutiny of popular biryani chains in Hyderabad has snowballed into a nationwide tax investigation, exposing suspected restaurant billing manipulation amounting to nearly INR 70,000 crore. 📰 Biryani Billing Scam Worth INR 70,000 Crore? Income Tax Probe Finds Massive Sales Suppression by Hyderabad Restaurant Chain Across India.
Telangana restaurants among top evaders in Rs 70,000 crore tax scam
Hyderabad: An investigation into Hyderabad’s biryani chains revealed that there is a greater tax evasion scam worth at least Rs 70,000 crore in the restaurant industry, with Karnataka recording the highest evasion and Telangana not far behind. The Income Tax Department reportedly used data analysis and artificial intelligence (AI) tools to inspect 60 terabytes of data on the pan-India billing software used by over 1 lakh restaurants. The investi…
₹70,000 crore sales suppression? AI-facilitated probe into Hyderabad restaurants reveals massive tax evasion scam
Detailed physical and digital inspections in a sample of 40 restaurants in Andhra Pradesh and Telangana detected suppression of sales turnover worth ₹400 crore.
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