Petpooja Under Scrutiny: Tax Authorities Probe Alleged Restaurant Billing Manipulation Spanning 45 Cities

India's restaurant technology sector is facing heightened scrutiny after tax officials launched a nationwide investigation into alleged systematic bill manipulation by restaurants using Petpooja's SaaS-based POS solutions. The probe, which began as an inquiry into prominent biryani chains in Hyderabad, has expanded into a coordinated crackdown across the country, with authorities raiding nearly 100 restaurants in 45 cities and uncovering what they describe as a pattern of concealed sales designed to evade tax obligations.

The investigation has produced significant findings in Punjab alone, where officials estimate that over ₹5,000 Crore in sales was erased from digital records. Investigators allege that the billing software allowed restaurants to delete or edit printed receipt entries at scale without raising red flags in the system. This method differs from traditional cash-based tax evasion, as it involved direct manipulation of digital transaction records through the POS provider's platform. Petpooja, which provides point-of-sale and restaurant management solutions to thousands of eateries across India, has found itself at the center of the probe, with authorities examining whether the software enabled or facilitated the alleged data scrubbing.

The case raises broader questions about accountability in the restaurant tech ecosystem and the adequacy of existing oversight mechanisms for digital billing infrastructure. Tax authorities have indicated that the investigation is still widening, with more locations and additional cases expected to surface as forensic analysis of financial records continues. The implications extend beyond individual restaurant operators to the SaaS providers themselves, whose platforms process millions of transactions daily. Legal experts suggest the outcome could set precedents for how digital point-of-sale systems are held responsible for data integrity and regulatory compliance in India's informal and hospitality sectors.