Hyderabad: Income Tax authorities launched sweeping city-wide raids targeting top Hyderabad eateries including Pista House, Shah Ghouse, and Mehfil, probing large-scale financial irregularities and suspected tax evasion.

On Tuesday, over 50 Income Tax teams inspected 30 different locations spanning offices, outlets, and the residences of owners and top management linked to the Pista House, Shah Ghouse, and Mehfil Group. Authorities specifically targeted businesses handling hundreds of crores in annual turnover, reviewing both physical and online sales records amid allegations of unaccounted revenue.

The investigation is centred on suspected large-scale tax evasion and financial discrepancies found in branch-wise sales statements and digital transaction records. Teams seized financial documents, including digital and paper records, as part of their sweeping search operations at local branches and the headquarters in districts spanning Hyderabad and Rangareddy.

These restaurants, among Hyderabad's most famous brands with outlets in Dubai and other Indian cities, have drawn attention because of their substantial valuation and rapid business growth in recent years. Authorities are especially scrutinising seasonal spikes such as Pista House’s booming Haleem trade, which reaches crores during festival months.

As further examination and forensic auditing of seized materials continue, officials have not yet announced any charges or penalties. The current operation is part of a wider city crackdown following complaints and earlier food safety raids on other establishments. Updates from the Income Tax Department regarding confirmed irregularities and legal actions are still awaited.