Visakhapatnam: The Enforcement Directorate (ED) has arrested Kailash Chand Mangala, promoter of Sukriti Foods Private Limited, in connection with the alleged supply of adulterated ghee to the Tirumala Tirupati Devasthanams (TTD). Mangala was arrested under Section 19 of the Prevention of Money Laundering Act (PMLA), 2002. He was produced before the Special Court for PMLA cases in Visakhapatnam, Andhra Pradesh, which subsequently remanded him to judicial custody.

ED probe follows Tirupati police FIR

The ED initiated its money laundering investigation based on an FIR registered at the Tirupati East Police Station. The FIR contains allegations of criminal conspiracy, cheating, forgery and corruption in connection with the alleged fraudulent procurement and supply of adulterated ghee to the TTD. According to the ED, the investigation has revealed details of how the adulterated product was manufactured, presented as genuine cow ghee and supplied to the temple administration.

Palm oil and chemicals allegedly used in ghee

According to the agency, refined palm oil, palm kernel oil and palmolein were used to prepare the adulterated ghee. Investigators also found the alleged use of substances such as MG-90, monoglycerides, Myvaset Soft 400 and acetic acid ester during the manufacturing process. The product was subsequently supplied to the TTD under the label of “Agmark Special Grade Cow Ghee”, the ED said. Between 2019 and 2024, the alleged fraudulent supply involved ghee worth around ₹230 crore, of which approximately ₹96 crore worth was allegedly manufactured by Mangala.

False records allegedly maintained

The ED has alleged that Mangala was involved in procuring the adulterated raw materials and manufacturing the product at his factory. The agency further alleged that the supply was carried out through several companies, including Shri Vaishnavi Dairy Specialities Private Limited, Malganga Milk & Agro Products Private Limited and AR Dairy Foods Private Limited. Investigators also alleged that Mangala created and maintained false records relating to the purchase and sale of ghee and refined palm oil. According to the ED, these records were allegedly used to conceal the use of adulterated ingredients and make the transactions appear to involve genuine cow ghee.

Vipin Jain arrested earlier

The ED had previously arrested Vipin Jain, promoter and director of Bhole Baba Organic Dairy Milk Private Limited, in connection with the same investigation. Jain has been accused of being part of the alleged conspiracy to manufacture and fraudulently supply adulterated ghee to the TTD. The ED said further investigation into the alleged money laundering network and the supply of adulterated ghee is underway.