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Unregistered Pan Masala Unit Raided; Rs 160 Crore Tax Evasion Uncovered

Authorities have shut down an illegal pan masala manufacturing facility near Hyderabad that was operating without proper registration. The operation has resulted in the detection of approximately Rs 160 crore in tax evasion.

LSN India · 22 August 2026

Enforcement agencies have dismantled an unregistered pan masala manufacturing unit operating clandestinely in the vicinity of Hyderabad, unearthing significant tax violations in the process. The illicit facility was being run without the requisite legal registrations and compliance certifications required under Indian manufacturing and taxation laws.

Investigations into the operation revealed tax evasion amounting to approximately Rs 160 crore, a substantial figure highlighting the scale of the illegal enterprise. The unit had been operating outside the formal regulatory framework, allowing operators to circumvent excise duties, goods and services tax, and other statutory obligations.

The bust represents part of ongoing efforts by tax and regulatory authorities to clamp down on unregistered manufacturing units across the region. Pan masala and similar products remain subject to stringent regulations, and unlicensed production facilities pose risks to both revenue collection and consumer safety standards.

The seized unit and its assets are now in the custody of relevant authorities. Further investigations are underway to determine the full scope of operations and identify all parties involved in the illegal manufacturing and distribution network.