Hyderabad: I-T dept raids Pista House, Shah Ghouse, Mehfil Group in tax evasion case
The searches, conducted simultaneously at dawn, focused on businesses that collectively generate hundreds of crores
By - Sistla Dakshina Murthy
Representational Image
Hyderabad : Income Tax Investigation Wing on Tuesday raided Hyderabad's biggest biryani and restaurant chains, including Pista House, Shah Ghouse, and the Mehfil Group, for suspected tax evasion.
A total of 30 locations, including corporate offices, key outlets, staff quarters, and the residences of owners, directors, and senior employees, were searched as part of the operation.
Prominent food chains under intense scrutiny
The searches, conducted simultaneously at dawn, focused on businesses that collectively generate hundreds of crores in annual revenue. Officials examined sales ledgers, branch-wise accounts, digital records, and financial documents to verify suspected discrepancies in reported income.
Investigators said the operations were triggered by indications of suppressed turnover, unaccounted cash flow, and mismatches between declared and actual earnings.
Raids at residences of Pista House Owners
In Rajendranagar, IT teams raided the homes of Pista House owner Mohammad Abdul Mazeed and Mohammad Mustan, deploying four teams at Mazeed’s residence alone. Officials reportedly uncovered significant differences between the income recorded in official books and ground-level revenue.
Sources said allegations of hawala routes, fake entries, suspicious transactions, and inconsistent tax payments are under examination. The chain's staff residences and worker accommodations were also searched, with officials seizing digital storage devices and analysing hard-disk data.
The Pista House chain’s 44-outlet network and high Haleem-season earnings have reportedly come under IT scrutiny. Mehfil’s rapid expansion to 15 outlets and overseas growth is reportedly being examined for financial inconsistencies. Shah Ghouse’s key branches and online transaction trail are reportedly central to the ongoing IT probe.
Verification of documents continues
Authorities said that detailed verification of seized documents, hard drives, and digital accounts is underway. Officials are expected to release additional information once the analysis is completed.
The coordinated action marks one of the most extensive IT operations on Hyderabad’s hospitality sector in recent years, aimed at uncovering possible large-scale tax evasion and unreported revenue by top food brands in the city.
