Daijiworld Media Network - Hyderabad
Hyderabad, Sep 19: The Enforcement Directorate (ED) has arrested Kailash Chand Mangala in connection with the alleged adulteration and fraudulent supply of ghee to the Tirumala Tirupati Devasthanams (TTD).
The Hyderabad Zonal Office of the ED arrested Mangala on Friday under Section 19 of the Prevention of Money Laundering Act (PMLA), 2002. He was produced before the Special Court (PMLA) in Visakhapatnam, which remanded him to judicial custody.
The ED initiated its investigation based on an FIR registered at Tirupati East police station alleging criminal conspiracy, cheating, forgery and corruption in connection with the supply of adulterated ghee to the TTD.
According to the ED investigation, the adulterated ghee was allegedly manufactured using refined palm oil, palm kernel oil, palmolein and chemicals including MG-90, monoglycerides, Myvaset Soft 400 and acetic acid ester. The product was allegedly sold as “Agmark Special Grade Cow Ghee” for supply to the TTD.
The alleged fraudulent supply of ghee to the TTD between 2019 and 2024 was valued at around Rs 230 crore, of which approximately Rs 96 crore worth of adulterated ghee was allegedly produced by Mangala.
Mangala, promoter of M/s Sukriti Foods Private Limited, has been identified by the ED as an alleged co-conspirator. The agency said he facilitated procurement of adulterated ingredients and manufactured the adulterated ghee at his factory.
The ED further alleged that Mangala managed the supply of the adulterated ghee through several front companies, including M/s Shri Vaishnavi Dairy Specialities Private Limited, M/s Malganga Milk & Agro Products Private Limited and M/s AR Dairy Foods Private Limited.
The investigation also found that Mangala allegedly created and maintained false records relating to the purchase and sale of ghee and refined palm oil. According to the agency, the records were used to conceal the alleged use of adulterants and create an appearance of genuine production and supply of cow ghee.
Earlier, the ED had arrested Vipin Jain, promoter and director of M/s Bhole Baba Organic Dairy Milk Private Limited, for his alleged involvement in the conspiracy to manufacture and fraudulently supply adulterated ghee to the TTD.
Further investigation is underway.