Massive Tax Evasion Bust: AI Uncovers ₹70,000 Crore Black Money in 1.77 Lakh Biryani Restaurants
AI-Led Investigation Exposes Large-Scale Fraud
A major tax evasion scam has been uncovered in restaurants across India.
The investigation was carried out by the Income Tax Department using advanced AI and big data tools.
Authorities detected concealed income worth ₹70,000 crore over a five-year period.
Around 1.77 lakh restaurants, many selling Hyderabadi Biryani, were found manipulating billing records.
How the Scam Was Detected
The hyderabad unit of the Income Tax Department analyzed nearly 60 terabytes of transaction data.
The data came from billing software used by more than 1 lakh restaurants nationwide.
Officials discovered that restaurants falsified wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW'>digital invoices and suppressed actual sales figures.
The probe focused on transactions dating back to the financial year 2019–20.
Authorities stated that the monitored software accounts for nearly 10% of India’s restaurant billing software market, suggesting the scale could be even wider.
Generative AI and advanced analytics were used to study data from 1.77 lakh restaurant IDs.
Modus Operandi: Deleting and Altering Bills
After customers made payments, several restaurants allegedly deleted or modified bills in their systems.
Nationwide, bills worth ₹13,317 crore out of the ₹70,000 crore were reportedly deleted post-payment.
In andhra pradesh and telangana alone, concealed sales exceeded ₹5,100 crore.
Officials suspect that nearly 25% of total restaurant sales were hidden to evade tax.
States with Highest Tax Evasion
The investigation revealed that karnataka recorded the highest level of suspected tax evasion.
It was followed by telangana and tamil Nadu.
Authorities noted that in some cases, restaurant owners failed to properly erase wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW'>digital trails, making detection easier.
Ground Verification Confirms Findings
To validate AI findings, officials conducted physical inspections at 40 restaurants.
Actual sales figures were compared with billing software records.
Even this limited verification uncovered ₹400 crore in undeclared sales.
Authorities have not yet calculated the final tax liability, including penalties and interest.
The case highlights how AI-powered surveillance is reshaping tax enforcement and tightening scrutiny in the food and hospitality sector.
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