Visakhapatnam: The Enforcement Directorate (ED) has arrested Sukriti Foods promoter Kailash Chand Mangla in connection with its money-laundering investigation into the alleged adulteration of ghee supplied for preparing Tirupati Laddu prasadam.
The ED said Mangla was arrested by its Hyderabad office on September 17 and subsequently produced before a special Prevention of Money Laundering Act (PMLA) court in Visakhapatnam, which remanded him to judicial custody.
According to the agency, its investigation found that ghee supplied to the Tirumala Tirupati Devasthanams (TTD) as Agmark Special Grade Cow Ghee was allegedly manufactured using refined palm oil, palm kernel oil, palmolein and other chemical ingredients.
ED alleges palm oil and chemical-based adulteration
The agency alleged that the material used in the manufacture of the disputed ghee included refined palm oil, palm kernel oil, palmolein, MG-90, monoglycerides, Myvacet Soft 400 and acetic acid ester.
The ED said these ingredients were allegedly used to manufacture adulterated ghee that was subsequently supplied to TTD as genuine cow ghee.
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The allegations relate to supplies made between 2019 and 2024. The agency has estimated the value of the allegedly fraudulent ghee supplies to TTD at around ₹230 crore, while alleging that Mangla manufactured adulterated ghee worth approximately ₹96 crore.
Alleged use of front entities and false records
The ED has described Mangla as one of the alleged co-conspirators in the case. It said he facilitated the procurement of adulterants and manufactured the disputed ghee at his factory premises.
The agency further alleged that the supply of the product was coordinated through entities including Sri Vyshnavi Dairy Specialities, Malganga Milk & Agro Products and A.R. Dairy Foods.
The ED also alleged that Mangla created and maintained false purchase and sale records relating to ghee and refined palm oil. According to the agency, the records were intended to conceal the alleged use of adulterants and create the appearance of legitimate production and supply of cow ghee.
Earlier arrest in the case
Mangla is the second promoter-level arrest reported by the ED in the case. The agency had earlier arrested Vipin Jain, promoter and director of Bhole Baba Organic Dairy Milk, over similar allegations.
The latest arrest comes as the ED continues its investigation into the alleged diversion and adulteration of ghee supplied for Tirupati Laddu prasadam.
The allegations made by the ED remain subject to judicial proceedings. The arrest and remand do not by themselves establish criminal liability, which will be determined through the legal process.
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