Tirumala laddu row: UP promoter held, ED alleges ₹96 crore adulterated ghee manufactured

The Enforcement Directorate has arrested a promoter with a Uttar Pradesh-based food firm in connection with the alleged supply of adulterated ghee to the Tirumala Tirupati Devasthanams (TTD) for the preparation of the sacred “laddu prasadam”, officials said on Saturday.

A statement from ED’s Hyderabad zonal office said that Kailash Chand Mangla, a promoter at Sukriti Foods Private Limited in UP’s Ghaziabad, was arrested on Wednesday and sent to 14-day judicial custody on Friday.

The arrest was made under Section 19 of the Prevention of Money Laundering Act (PMLA), 2002, the agency said. It is part of the ongoing probe into the manufacture and supply of adulterated ghee allegedly passed off as Agmark Special Grade Cow Ghee for use by TTD.

The proceeds from the alleged fraudulent supply of ghee to TTD from 2019 to 2024 was valued at approximately ₹230 crore.

Of this, ED has alleged that adulterated ghee worth around ₹96 crore was manufactured by Mangla at his factory.

The agency also alleged that Mangla coordinated the supply of the adulterated product through several entities that it described as front entities, including Sri Vyshnavi Dairy Specialities Pvt Ltd, Malganga Milk & Agro Products Pvt Ltd and A R Dairy Foods Pvt Ltd. Mangla allegedly maintained fabricated records relating to the purchase and sale of ghee and refined palm oil.

“The alleged objective was to conceal the actual use of adulterants in the manufacturing process and create an appearance that the products being manufactured and supplied were genuine cow ghee,” the statement said.

ED said its probe began after a September 25, 2024 complaint by the TTD.

The agency said its probe found that the “ghee” was manufactured using a combination of refined palm oil, palm kernel oil, palmolein and various chemicals, including MG-90, monoglycerides, Myvacet Soft 400 and acetic acid ester. Mangla’s arrest follows the arrest of Vipin Jain, promoter and director of Bhole Baba Organic Dairy Milk Pvt. Ltd. The agency has said that its investigation is underway and more action may follow.