The Enforcement Directorate (ED) has arrested Kailash Chand Mangala in connection with its investigation into the alleged supply of adulterated ghee to the Tirumala Tirupati Devasthanams (TTD).
Mangala, promoter of Sukriti Foods Private Limited, was arrested by the ED’s Hyderabad Zonal Office under Section 19 of the Prevention of Money Laundering Act (PMLA), 2002. He was subsequently produced before the Special Court dealing with PMLA cases in Visakhapatnam, Andhra Pradesh.
The court has sent Mangala to judicial custody, according to reports on the ED investigation.
Investigation began after Tirupati police FIR
The ED’s money laundering probe was initiated following an FIR registered at the Tirupati East police station.
The FIR relates to allegations of criminal conspiracy, cheating, forgery and corruption linked to the alleged fraudulent supply of ghee to the TTD.
The investigation is examining how the alleged adulterated product was manufactured, documented and supplied to the temple administration.
ED alleges palm oil and chemicals were used
According to the ED’s investigation, the alleged adulterated ghee was manufactured using refined palm oil, palm kernel oil and palmolein along with various chemical ingredients.
The agency has also referred to substances including MG-90, monoglycerides, Myvaset Soft 400 and acetic acid ester in its findings.
The ED alleges that the resulting product was subsequently represented as “Agmark Special Grade Cow Ghee” for supply to the TTD.
ED puts alleged supply value at ₹230 crore
The agency has alleged that fraudulent ghee supplies to the TTD between 2019 and 2024 were worth around ₹230 crore.
Of this amount, the ED has alleged that approximately ₹96 crore worth of adulterated ghee was manufactured by Mangala at his facility. These figures are part of the agency’s ongoing investigation and allegations against the accused.
Alleged use of multiple companies in supply chain
The ED has identified Mangala as an alleged co-conspirator in the case. According to the agency, he helped procure materials used in the alleged adulteration and manufactured the product at his factory.
The investigation further alleges that the supply was handled through several companies, including Shri Vaishnavi Dairy Specialities Private Limited, Malganga Milk & Agro Products Private Limited and A.R. Dairy Foods Private Limited.
The agency is also examining the financial transactions and roles of entities connected with the alleged supply network.
ED alleges false records were maintained
Another part of the investigation concerns records related to the purchase and sale of ghee and refined palm oil.
The ED alleges that false records were created and maintained to hide the actual use of adulterating materials and make the production and supply appear to involve genuine cow ghee.
The agency is continuing to investigate the alleged financial transactions and the involvement of other people and companies in the case.
Earlier arrest in the case
Mangala’s arrest follows the earlier arrest of Vipin Jain, promoter and director of Bhole Baba Organic Dairy Milk Private Limited.
Jain has also been accused in the investigation of conspiring to manufacture and supply adulterated ghee to the TTD.
The ED’s investigation into the alleged adulteration and the financial aspects of the case remains ongoing.
