Income Tax Department Raids DSR Group Offices and Residences in Hyderabad Over Alleged Tax Evasion
Hyderabad, August 19, 2025: The Income Tax Department on Tuesday carried out extensive searches on the premises of the DSR Group, one of Hyderabad’s leading real estate and construction companies, over allegations of large-scale tax evasion and financial irregularities.
According to official sources, simultaneous raids were conducted at around 10 different locations across the city, including the company’s corporate offices and the residences of its key directors. The targeted areas include Banjara Hills, Jubilee Hills, and Gachibowli—prime localities where the DSR Group has several high-profile projects.
Evidence of Unaccounted Income
Sources revealed that the operation was initiated following credible intelligence inputs indicating unreported income, discrepancies in financial records, and suspected manipulation of accounts to evade taxes. Early findings from the raids have reportedly led to the recovery of incriminating documents, digital records, and evidence of unaccounted cash transactions. However, the exact scale of irregularities remains under investigation.
A senior IT official, speaking on condition of anonymity, said:
“These raids are part of a larger effort to curb tax evasion in the real estate sector. We are closely scrutinizing all financial records and transactions of the company. Further action will be initiated once the seized documents and digital data are fully analyzed.”
DSR Group Under the Scanner
The DSR Group, a well-known name in Hyderabad’s booming real estate industry, has built a reputation with luxury residential complexes, commercial towers, and township projects. Its rapid growth in recent years has placed it under the radar of enforcement authorities, as the real estate sector is often flagged for generating black money and unaccounted assets.
Teams of more than 50 Income Tax officials were reportedly deployed for the raids, covering not only company premises but also the homes of top management, including the Managing Director, to assess personal assets and investments linked to undisclosed income.
Past Precedents in Hyderabad Real Estate
Hyderabad’s real estate sector has witnessed similar crackdowns in the past. In 2021, the Income Tax Department unearthed undisclosed income worth over ₹300 crore after raiding a city-based real estate and waste management firm. Such operations underline the scale of financial misconduct that continues to plague the industry.
Impact on the Real Estate Sector
While the DSR Group has not yet released an official statement, sources close to the company indicated that it is cooperating with investigators and insists that its financial practices are “fully transparent.”
The raids have nevertheless sent shockwaves through Hyderabad’s real estate market, with industry watchers expressing concern that more developers could come under scrutiny in the near future.
Possible Consequences
If the allegations against the DSR Group are confirmed, the company and its directors may face hefty penalties, prosecution, and possible asset seizures under the Income Tax Act, 1961. The ongoing investigation is expected to last several days, as authorities meticulously examine the seized records and digital evidence.
Officials said that the department intends to tighten its enforcement in high-risk sectors like real estate, sending a strong warning to developers and businesses about the importance of transparency and tax compliance.
Further details are awaited, and an official statement from the Income Tax Department is likely once the preliminary analysis of seized materials is complete.
