The Enforcement Directorate (ED) has provisionally attached movable and immovable assets worth ₹129.85 crore in its money-laundering investigation into the alleged supply of adulterated ghee to the Tirumala Tirupati Devasthanams (TTD), the trust that manages the Tirupati temple.
According to the agency, adulterated ghee worth approximately ₹234.5 crore was allegedly supplied to TTD, directly and through intermediary dairy firms, for preparing the temple’s famous laddu prasadam. The alleged transactions involved a network of dairy companies, front entities and financial intermediaries.
The assets provisionally attached belong to Bhole Baba Organic Dairymilk Pvt Ltd, Sri Vyshnavi Dairy Specialities Pvt Ltd and Sukriti Foods Pvt Ltd, along with their promoters, family members and other related entities and individuals. The action was taken under the Prevention of Money Laundering Act (PMLA), 2002.
ED Alleges Palm Oil and Chemicals Were Used
The ED’s investigation alleges that the ghee was manufactured at facilities operated by Bhole Baba and Sukriti Foods by blending refined palm oil, palmolein and palm kernel oil with chemicals, including monoglycerides, acetic acid esters, lactic acid and beta-carotene.
According to the agency, the resulting product was invoiced and supplied as ghee. Investigators allege that intermediary dairies participated in TTD tenders under their own names in exchange for commissions, helping conceal the alleged origin and manufacture of the product.
Alleged Financial Transactions and Diversion of Funds
The ED has also alleged that fictitious purchases of milk and ghee, along with false sales of dairy by-products such as skimmed milk, were recorded to make the companies appear to be operating legitimate dairy businesses.
The agency further alleges that payments routed through banking channels for fictitious transactions were returned in cash through hawala channels. According to the investigation, these funds were allegedly used to finance transactions involving palm oil, pay commissions to intermediary dairies and make payments to others connected with the alleged scheme.
The investigation originated from an FIR registered at Tirupati East Police Station alleging criminal conspiracy, cheating, forgery and corruption in the supply of ghee to TTD. The underlying case has also resulted in chargesheets filed before the competent court.
Searches and Earlier Enforcement Action
On June 3, 2026, the ED conducted searches at 16 premises across Uttarakhand, Tamil Nadu, Maharashtra, Delhi, Rajasthan and Andhra Pradesh. The locations were linked to alleged principal conspirators, intermediary dairies, chemical suppliers and providers of accommodation entries.
The searches resulted in the seizure or freezing of cash and bank balances worth ₹2.7 crore, according to the agency. The ED also arrested Vipin Jain, associated with Bhole Baba Organic Dairymilk, and Kailash Chand Mangla, promoter of Sukriti Foods, in connection with the investigation.
Following the latest provisional attachment, the total value of assets attached, seized or frozen in the ED’s case reportedly reached ₹132.55 crore.
The allegations remain subject to judicial proceedings, and the provisional attachment does not by itself establish criminal guilt.
For the dairy industry, the case underscores the importance of authentic raw-material sourcing, traceable milk procurement, accurate production records and robust testing of ghee and other dairy products. It also highlights the need for effective supplier verification and quality assurance when dairy ingredients are procured through third-party manufacturers and intermediaries.
Source: Dairynews7x7 16 Oct, 2026 Read full story here
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