The Income Tax Department has launched a nationwide search operation targeting major restaurant chains after investigators uncovered a suspected ₹70,000 crore tax evasion racket linked to a Hyderabad-based biryani restaurant chain.
Officials suspect that several restaurants used specialised billing software to hide actual sales, allowing them to underreport income and evade taxes.
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Nationwide searches underway
Income Tax teams have conducted searches at multiple locations across India, including restaurants and offices linked to large food chains.
According to officials, the objective of the operation is to examine whether restaurant businesses suppressed real income while filing tax returns. Investigators are checking point-of-sale (POS) systems, billing data and financial records during the searches.
The investigation has created concern across the restaurant industry as the alleged tax evasion could be one of the largest cases in the sector if proven.
Hyderabad biryani chain triggered probe
The case reportedly began with an investigation into a Hyderabad-based biryani restaurant chain, where officials suspected massive tax evasion.
During the probe, investigators found indications that sales figures were manipulated through billing software, allowing restaurants to show lower revenue than their actual earnings.
This discovery prompted authorities to widen the investigation to identify whether similar methods were used by restaurant businesses across the country.
Billing software suspected in sales suppression
Investigators believe the software used by some restaurants allowed them to alter or hide sales records after transactions were completed.
Customers would receive proper bills, but the system allegedly did not always record the actual sales data or modified it later, reducing the declared turnover and tax liability.
Officials suspect that multiple restaurants may have used the same billing platform, raising concerns about a broader network of tax evasion.
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POS systems and financial data under scrutiny
Income Tax officials are now examining:
- POS machine records
- Billing software logs
- Financial statements and tax filings
- Bank transaction data
Authorities are attempting to determine whether actual sales and declared income differ significantly.
Investigation continues
Officials say the probe is still ongoing and further searches may take place depending on the findings.
Experts believe that if the allegations are confirmed, the case could become one of the biggest tax evasion scandals in India’s restaurant industry, given the scale of the suspected ₹70,000 crore turnover suppression.
About the author – Rehan Khan is a law student and legal journalist with a keen interest in cybercrime, digital fraud, and emerging technology laws. He writes on the intersection of law, cybersecurity, and online safety, focusing on developments that impact individuals and institutions in India.
