India, March 30 -- Punjab excise and taxation minister Harpal Singh Cheema on Monday said that a Rs.200 crore tax evasion racket has been unearthed in the state's hospitality sector, exposing systemic under-reporting across dhabas, restaurants, and fast-food outlets.

Addressing a press conference, Cheema said 882 establishments in urban centres like Mohali, Jalandhar, and Ludhiana are being investigated, with Rs.2.02 crore recovered so far.

The minister said that these outlets were identified through a state-wide data-driven enforcement exercise. "With the inclusion of data for the financial years 2023-24 and 2024-25, the total magnitude of evasion is likely to reach approximately Rs.500 crore," he said.

In the preliminary inquiry, 239...