The Enforcement Directorate (ED) arrested Kailash Chand Mangla, promoter of Sukriti Foods, on Thursday, 17th September, on money laundering charges in connection with the adulteration of ghee used to prepare Tirupati Laddu prasadam. The agency said the ghee was made using refined palm oil, palmolein, palm kernel oil and several chemicals before being supplied to the Tirumala Tirupati Devasthanams (TTD) as genuine cow ghee.
The federal agency said on Friday, 18th September, that Mangla was arrested by the ED’s Hyderabad office and he was later produced before a special Prevention of Money Laundering Act (PMLA) court in Visakhapatnam, which sent him to judicial custody.
ED says palm oil used to make adulterated ghee
According to the ED, its investigation found that adulterated ghee used for preparing Tirupati Laddu prasadam was manufactured using several ingredients that were not genuine cow ghee.
The agency said the adulterated ghee was made using Refined Palm Oil, Palm Kernel Oil and Palmolein, along with chemicals including MG-90, Monoglycerides, Myvacet Soft 400 and Acetic Acid Ester.
The ED further added that the product was then supplied to TTD by presenting it as “Agmark Special Grade Cow Ghee”.
The agency said Mangla was one of the co-conspirators in the case. According to the ED, he helped procure the adulterants and manufactured the adulterated ghee at his factory.
ED reveals fake records were created
The agency further revealed that Mangla coordinated the supply of the adulterated ghee through several front entities, including Sri Vyshnavi Dairy Specialities, Malganga Milk & Agro Products and A.R. Dairy Foods.
The ED also accused him of maintaining false records to hide the actual use of palm oil and other adulterants during production.
“Mangla created and maintained false records relating to the sale and purchase of ghee and refined palm oil, with the objective of concealing the actual utilisation of adulterants and creating an appearance of legitimate production and supply of genuine cow ghee,” the agency said.
Rs 230 crore supply under investigation
According to the ED, the fraudulent supply of ghee to TTD between 2019 and 2024 was worth around ₹230 crore. Of this, the agency said that adulterated ghee worth approximately ₹96 crore was manufactured by Mangla.
The ED had earlier arrested Vipin Jain, promoter and director of Bhole Baba Organic Dairy Milk, in connection with the case on similar allegations in November last year.
The investigation is part of the wider probe into alleged adulteration and fraudulent supply of ghee to TTD, which manages the famous Tirumala temple and the preparation of its Laddu prasadam.
