ED arrests another accused in Tirumala ghee adulteration case

The Hyderabad zonal office of the Directorate of Enforcement (ED) arrested Kailash Chand Mangla on Thursday (September 17) under Section 19 of the Prevention of Money Laundering Act (PMLA), 2002, in connection with the alleged ghee adulteration case at Tirumala. He was produced before the PMLA Special Court in Visakhapatnam, which remanded him in judicial custody.

The case originated with an FIR registered at the Tirupati East police station alleging criminal conspiracy, cheating, forgery and corruption in connection with the fraudulent supply of adulterated ghee to the Tirumala Tirupati Devasthanams (TTD).

According to the ED, its investigation revealed that the adulterated ghee was manufactured using refined palm oil, palm kernel oil, palmolein and other chemicals, including MG-90, monoglycerides, Myvacet Soft 400 and acetic acid ester. The product was subsequently supplied to the TTD as ‘Agmark Special Grade cow ghee’ for use in the preparation of the sacred ‘Laddu Prasadam’.

The value of the alleged fraudulent ghee supplies made during 2019-2024 was estimated at ₹230 crore, of which adulterated ghee worth ₹96 crore was allegedly manufactured by Mangla, the ED said.

Mangla, promoter of M/s Sukriti Foods Pvt. Ltd., has been named as a co-conspirator for allegedly facilitating the procurement of adulterants and manufacturing adulterated ghee at his factory premises.

He also allegedly coordinated the supply of the adulterated ghee through various front entities, including M/s Sri Vyshnavi Dairy Specialities Pvt. Ltd., M/s Malganga Milk & Agro Products Pvt. Ltd. and M/s A.R. Dairy Foods Pvt. Ltd.

The investigation further revealed that Mangla had allegedly created and maintained false records relating to the sale and purchase of ghee and refined palm oil to conceal the actual use of adulterants and create an appearance of legitimate production and supply of genuine cow ghee, the ED said.

The ED had earlier arrested Vipin Jain, promoter and director of M/s Bhole Baba Organic Dairy Milk Pvt. Ltd., who is alleged to have orchestrated the manufacture and fraudulent supply of adulterated ghee to the TTD.