CHANDIGARH: 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, as the Bhagwant Mann Government launched an aggressive, technology-driven crackdown to protect public revenue. With 882 establishments already under the scanner and ₹2.02 crore recovered so far, Harpal Singh Cheema made it clear that the investigation is rapidly expanding and the total evasion could surge to nearly ₹500 crore as more data is analysed.
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. Backed by advanced data analytics, inputs from TIU and SIPU, and the success of the ‘Bill Liyao, Inam Pao’ scheme, the Aam Aadmi Party (AAP) Government has intensified enforcement, with Harpal Singh Cheema issuing a firm warning that strict action will follow against every violator while ensuring full use of technology to safeguard the State’s revenue.
Addressing a press conference at Punjab Bhawan, Finance Minister Harpal Singh Cheema stated, “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.”
The Finance Minister further added, “With further analysis and the inclusion of data pertaining to the 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, Harpal Singh Cheema stated, “In the preliminary inquiry conducted till date, 239 cases have been examined, resulting in the detection of turnover suppression of approximately ₹50 crore.” He added, “This evasion involves a tax of ₹2.54 crore at a 5% rate, and our Department has so far ensured the recovery of ₹2.02 crore, with further recovery proceedings still ongoing.”