Punjab Finance, Planning, Excise and Taxation Minister Harpal Singh Cheema on Monday revealed a massive ₹200 crore tax evasion racket in Punjab’s hospitality sector, exposing deep-rooted and systemic under-reporting across dhabas, eateries, restaurants, and fast-food outlets.
File Photo: IANS
Punjab Finance, Planning, Excise and Taxation Minister Harpal Singh Cheema on Monday revealed a massive ₹200 crore tax evasion racket in Punjab’s hospitality sector, exposing deep-rooted and systemic under-reporting across dhabas, eateries, restaurants, and fast-food outlets.
The Aam Aadmi Party (AAP)-led government, under Chief Minister Bhagwant Mann, has launched an aggressive, technology-driven crackdown to protect public revenue. With 882 establishments already under the scanner and ₹2.02 crore recovered so far, Cheema made it clear that the investigation is rapidly expanding, and total evasion could rise to nearly ₹500 crore as more data is analysed.
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Flagging how major urban centres like Mohali, Jalandhar, and Ludhiana have emerged as key hubs of suppression, he underscored that sectors driven by high cash and hybrid payments are at the centre of the fraud.
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Backed by advanced data analytics, inputs from the Tax Intelligence Unit (TIU) and the State Investigation and Preventive Unit (SIPU), and the success of the ‘Bill Liyao, Inam Pao’ scheme, the government has intensified enforcement. Cheema issued a firm warning that strict action will be taken against every violator while ensuring full use of technology to safeguard the State’s revenue.
Addressing a press conference at Punjab Bhawan, the Finance Minister said, “Through a comprehensive, state-wide, data-driven enforcement exercise covering hotels, dhabas, eateries, bakeries, sweet shops, restaurants, catering services and similar establishments, we have identified a total of 882 establishments pertaining to FY 2025–26.”
He further added, “With continued analysis and the inclusion of data from financial years 2023–24 and 2024–25, the total magnitude of evasion is likely to reach approximately ₹500 crore.”
Detailing the findings of the ongoing verification, Cheema stated, “In the preliminary inquiry conducted so far, 239 cases have been examined, resulting in the detection of turnover suppression of approximately ₹50 crore.”
He added, “This evasion involves tax of ₹2.54 crore at a 5% rate, of which ₹2.02 crore has already been recovered, while further recovery proceedings are ongoing.”
Underlining the scale of discrepancies, the Minister said, “We have discovered turnover suppression exceeding ₹2 crore in three taxpayers, above ₹1 crore in six taxpayers, above ₹50 lakh in 18 taxpayers, above ₹25 lakh in 26 taxpayers, and above ₹5 lakh in 91 taxpayers.”
Highlighting sector-specific trends, he noted, “Our analysis indicates systemic patterns of under-reporting in high-cash and hybrid-payment segments.” He added, “Dhabas account for approximately ₹10 crore of the suppression, followed by small eateries, coffee and chai bars at around ₹8 crore, and pizza and fast-food outlets contributing over ₹6 crore.”
Providing a district-wise breakdown, Cheema said, “Mohali has reported the highest turnover suppression of ₹8.16 crore, followed by Jalandhar with ₹6.72 crore and Ludhiana with ₹5.48 crore.” He added that Patiala and Amritsar have shown comparatively lower discrepancies, with ₹3.83 crore and ₹0.99 crore, respectively.
Explaining the methodology behind the crackdown, the Minister said, “During detailed scrutiny of business data by the State Investigation and Preventive Unit, it was observed that a significant number of establishments were using online billing applications.”
He added, “I give full credit to the Tax Intelligence Unit, the State Investigation and Preventive Unit (SIPU), and the overwhelming success of our ‘Bill Liyao, Inam Pao’ scheme for enabling this large-scale detection.”
He further elaborated, “Based on risk parameters, data analytics, and comparative analysis with GST returns, we identified instances of possible suppression of turnover. We then directed the concerned online platforms to furnish detailed transactional data, which field formations are now using for on-ground verification and reconciliation with statutory returns.”
Emphasising balanced enforcement, Cheema said, “It is pertinent to note that no discrepancy has been observed in 52 establishments, reflecting a fair and data-driven verification process.”
Outlining the next steps, he stated, “The remaining cases are under active verification and detailed scrutiny, and it is expected that the entire exercise of verification and recovery will be completed within one month.” He added, “To further strengthen the investigation, the Department is in the process of obtaining UPI transaction data and other digital payment trails, which will enable deeper reconciliation of actual receipts with reported turnover, thereby enhancing detection accuracy.”
Issuing a clear warning, Cheema said, “The Bhagwant Mann Government is committed to leveraging technology, data analytics, and coordinated field enforcement to ensure tax compliance and safeguard State revenue. Strict action will be taken in all cases of tax evasion, while compliant taxpayers will continue to be facilitated.”
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