Siddarth Sethia
Hyderabad:The Enforcement Directorate (ED) has arrested Kailash Chand Mangla,promoter of Sukriti Foods Pvt.Ltd, in connection with the alleged adulteration and fraudulent supply of ghee to the Tirumala Tirupati Devasthanams (TTD).
Mangla was arrested by the ED’s Hyderabad Zonal Office on September 17 under Section 19 of the Prevention of Money Laundering Act (PMLA), 2002.
He was produced before the Special Court (PMLA) in Visakhapatnam,Andhra Pradesh,which remanded him to judicial custody.
The ED launched its investigation based on an FIR registered at Tirupati East Police Station alleging criminal conspiracy,cheating,forgery and corruption in connection with the supply of adulterated ghee to TTD.
According to the ED,adulterated ghee was allegedly manufactured using refined palm oil, palm kernel oil, palmolein and chemicals including MG-90, monoglycerides,Myvacet Soft 400 and acetic acid ester.
The product was allegedly supplied as Agmark Special Grade Cow Ghee for use by TTD.
The agency said fraudulent ghee supplies to TTD between 2019 and 2024 were valued at around Rs.1,230 crore,of which approximately Rs.96 crore worth of adulterated ghee was allegedly manufactured by Mangla.
The ED alleged that Mangla was one of the co-conspirators and facilitated the procurement of adulterants and manufacture of adulterated ghee at his factory premises.
He allegedly coordinated supplies through various front entities, including Sri Vyshnavi Dairy Specialities Pvt. Ltd.,Malganga Milk & Agro Products Pvt. Ltd.and A.R. Dairy Foods Pvt. Ltd.
Investigators also found that Mangla allegedly created and maintained false records relating to the sale and purchase of ghee and refined palm oil to conceal the actual use of adulterants and project the production and supply as genuine cow ghee, the agency said.
Earlier, the ED had arrested Vipin Jain,promoter and director of Bhole Baba Organic Dairy Milk Pvt. Ltd.,who is alleged by the agency to have orchestrated the manufacture and fraudulent supply of adulterated ghee to TTD.Further investigation is underway, the ED said.
