ED Arrests MP Dairy Firm Owner in ₹20.59 Cr Fraud
The Enforcement Directorate (ED) has arrested Kishan Modi, owner of Bhopal-based Jayshri Gayatri Food Products Pvt Ltd (JGFPPL), in connection with a ₹20.59 crore money laundering case linked to the manufacture and export of adulterated dairy products.
The arrest was made on March 13, 2026, under the Prevention of Money Laundering Act (PMLA), 2002, and the आरोपी was produced before a Special PMLA Court in Bhopal on March 14, which remanded him to ED custody till March 18, 2026.
The case stems from two FIRs registered in Bhopal—one at Habibganj police station in August 2023 and another by the Economic Offences Wing (EOW) in July 2024—against the company and its officials. Investigations revealed that the firm, which sold products under the ‘Milk Magic’ brand, allegedly manufactured adulterated dairy items by replacing milk fat with palm oil and other harmful chemicals, supplying them in domestic markets as well as exporting them to multiple countries.
To obtain export clearance, the company allegedly submitted forged laboratory test reports to the Export Inspection Agency (EIA), Indore, which were later found to be fake upon verification. Based on these forged documents, the firm exported adulterated products and received payments through bank accounts in Axis Bank and HDFC Bank, with ED identifying ₹20.59 crore as proceeds of crime.
The agency has stated that further investigation is underway to trace the full money trail and identify other individuals involved in the case.
Source: Dairynews7x7 17th March, 2026 Get full story here
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