Income Tax officials, using AI-driven forensic analytics, have unearthed a massive ₹70,000 crore tax evasion scam involving Hyderabad’s top biryani chains. By analyzing 60 terabytes of billing data across 1.77 lakh restaurant IDs, investigators found widespread suppression of sales and deletion of cash invoices, exposing one of India’s largest food sector frauds.
In a landmark investigation, the Income Tax Department’s Hyderabad unit leveraged artificial intelligence and advanced data analytics to crack open a tax evasion racket worth ₹70,000 crore. The probe began with Hyderabad’s famous biryani chains and expanded nationwide, revealing systemic manipulation of billing platforms used by restaurants.
Officials examined 60TB of transactional data from a widely used billing software, covering 1.77 lakh restaurant IDs. The analysis revealed that nearly 27% of total sales were suppressed, with eateries deleting cash invoices to evade income tax and GST liabilities.
The crackdown involved 50 IT teams conducting searches across 15 key premises, including outlets and residences of senior management linked to chains such as Pista House, Shah Ghouse Café, and Mehfil. Investigators believe the findings may only be the tip of the iceberg, with similar practices suspected across the food and beverage sector.
Experts note that the use of AI-powered forensic tools marks a turning point in India’s tax enforcement, enabling authorities to process massive datasets and detect hidden financial irregularities. The revelations are expected to trigger stricter compliance checks and reforms in restaurant billing practices.
Key Highlights
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Scale of Fraud: ₹70,000 crore tax evasion uncovered.
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Data Analyzed: 60TB billing records, 1.77 lakh restaurant IDs.
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Suppressed Sales: 27% of turnover hidden; cash invoices deleted.
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Major Chains: Pista House, Shah Ghouse Café, Mehfil among those probed.
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Enforcement Action: 50 IT teams searched 15 premises in Hyderabad.
Sources: Times Now – AI in IT Probe; Moneycontrol – Biryani Trail Tax Scam; Times of India – 60TB Data Analysis; WION – AI Crackdown on Restaurant Billing Fraud.