Hyderabad Biryani Raids Lead to Probe into Alleged ₹70,000 Crore Billing Irregularities

Hyderabad/NewDelhi: The Income Tax Department’s probe that began with searches on prominent biryani restaurant chains in Hyderabad has expanded into nationwide investigation into large-scale billing irregularities, with data analysis indicating possible suppressed turnover running into ₹70,000 crore.

The investigation was triggered after searches were conducted on well-known Hyderabad-based restaurant chains including Pista House and Shah Ghouse Café. During the course of these searches, officials reportedly detected discrepancies between reported sales and actual transaction data, prompting a deeper digital audit.

Preliminary media report stated that tax authorities analysed nearly 60 terabytes of billing data sourced from a widely used restaurant billing software platform. The data allegedly covered around 1.77 lakh restaurant IDs across India and spanned multiple financial years beginning 2019–20.

Officials found instances of invoice deletions and manipulation of billing records before tax filings. The analysis reportedly identified bills worth thousands of crores that were deleted from the system. Based on broader patterns observed in the dataset, authorities estimated that the total suppressed turnover across the sector could be around ₹70,000 crore.

The probe, which started in Hyderabad, has now expanded to multiple states as authorities examine billing trails, cash transactions and digital payment records. The department is said to be issuing notices based on data analytics and reconciliation findings.

The Income Tax Department has not yet issued a detailed public statement quantifying the final tax liability, and the investigation remains ongoing. Further action is expected after completion of assessments and verification of financial records.