Biryani Check in Hyderabad Leads to Massive ₹70,000 Crore Tax Evasion Exposure

Hyderabad | 19 Feb 2026 What began as a routine inspection of biryani restaurants in Hyderabad has led to the exposure of a massive tax evasion network spread across the country. Investigators found that thousands of restaurants were underreporting their income to avoid paying taxes, resulting in an estimated loss of nearly ₹70,000 crore over the past few years, according to a report . The breakthrough came when officials examined a popular billing software used by more than one lakh restaurants nationwide. With the help of advanced computer tools and artificial intelligence, authorities analysed billing data from around 1.77 lakh restaurants, scanning nearly 60 terabytes of information. The probe revealed that after customers paid, many bills were quietly deleted or altered in the system to reduce reported earnings. Data showed that restaurants using this software erased bills worth over ₹13,000 crore across India. In Andhra Pradesh and Telangana alone, hidden sales crossed ₹5,100 crore. To confirm the findings, officials conducted physical inspections at 40 restaurants, comparing actual sales with digital records. Even this limited check uncovered close to ₹400 crore in unreported revenue. Karnataka emerged as the state with the highest evasion, followed by Telangana and Tamil Nadu. Investigators explained that restaurant owners themselves misused the billing systems. Common methods included deleting only cash transactions, wiping records for specific days or months, and then filing tax returns showing low income. The study covered restaurant sales of nearly ₹2.43 lakh crore over six years. The probe, which started in Hyderabad, Visakhapatnam and nearby areas, has now expanded nationwide. Officials believe this may be just the beginning, as several other billing software platforms could be hiding similar large-scale tax evasion. Biryani Check in Hyderabad Leads to Massive ₹70,000 Crore Tax Evasion Exposure What began as a routine inspection of biryani restaurants in Hyderabad has led to the exposure of a massive tax evasion network spread across the country. Investigators found that thousands of restaurants were underreporting their income to avoid paying taxes, resulting in an estimated loss of nearly ₹70,000 crore over the past few years, according to a report . The breakthrough came when officials examined a popular billing software used by more than one lakh restaurants nationwide. With the help of advanced computer tools and artificial intelligence, authorities analysed billing data from around 1.77 lakh restaurants, scanning nearly 60 terabytes of information. The probe revealed that after customers paid, many bills were quietly deleted or altered in the system to reduce reported earnings. Data showed that restaurants using this software erased bills worth over ₹13,000 crore across India. In Andhra Pradesh and Telangana alone, hidden sales crossed ₹5,100 crore. To confirm the findings, officials conducted physical inspections at 40 restaurants, comparing actual sales with digital records. Even this limited check uncovered close to ₹400 crore in unreported revenue. Karnataka emerged as the state with the highest evasion, followed by Telangana and Tamil Nadu. Investigators explained that restaurant owners themselves misused the billing systems. Common methods included deleting only cash transactions, wiping records for specific days or months, and then filing tax returns showing low income. The study covered restaurant sales of nearly ₹2.43 lakh crore over six years. The probe, which started in Hyderabad, Visakhapatnam and nearby areas, has now expanded nationwide. Officials believe this may be just the beginning, as several other billing software platforms could be hiding similar large-scale tax evasion.