Tirupati laddu probe: ED names palm oils and chemicals in alleged ghee adulteration

The Enforcement Directorate has alleged that ghee supplied to the Tirumala Tirupati Devasthanams was manufactured using palm-based oils and chemicals before being supplied as Agmark Special Grade Cow Ghee.

The allegations form part of the agency's money-laundering investigation into alleged fraudulent supplies to TTD.

What does the ED allege?

The ED has alleged that adulterated ghee supplied to TTD was manufactured using refined palm oil, palm kernel oil, palmolein and several chemical substances. The agency named MG-90, monoglycerides, Myvacet Soft 400 and acetic acid ester among the substances it says were used in the alleged manufacturing process.

According to the ED, the resulting product was allegedly supplied as Agmark Special Grade Cow Ghee for use by TTD. These are allegations made as part of the ongoing investigation and have not, by themselves, established criminal liability.

The ED arrested Kailash Chand Mangla, promoter of Sukriti Foods Pvt Ltd, on September 17 under the Prevention of Money Laundering Act. He was subsequently produced before the Special PMLA Court in Visakhapatnam, which remanded him to judicial custody.

The agency alleges that Mangla facilitated the procurement of the substances used as adulterants, manufactured the disputed ghee at his factory and coordinated its subsequent supply through other entities.

What is the alleged money trail?

The ED has said that alleged fraudulent ghee supplies to TTD between 2019 and 2024 were valued at around Rs 230 crore. Of this, the agency alleges that approximately Rs 96 crore worth of adulterated ghee was manufactured by Mangla's company.

The agency has also alleged that the disputed ghee was supplied through entities it describes as front companies and that records relating to the purchase and sale of ghee and refined palm oil were maintained in a manner intended to conceal the alleged use of adulterants.

What other firms does the ED mention?

The agency has named Sri Vyshnavi Dairy Specialities Pvt Ltd, Malganga Milk and Agro Products Pvt Ltd and AR Dairy Foods Pvt Ltd in its allegations concerning the supply network. According to the ED, these entities were allegedly used to coordinate the supply of the disputed ghee.

The investigation had earlier resulted in the arrest of Vipin Jain, promoter and director of Bhole Baba Organic Dairy Milk Pvt Ltd. The ED has alleged that Jain was involved in the manufacture and supply of adulterated ghee to TTD.

What is important to note about the allegations?

The ED's money-laundering investigation and the separate investigation into the alleged adulteration should be distinguished. A report published on September 19 said a CBI-led Special Investigation Team examining the alleged ghee adulteration did not find animal fat in the samples tested.

The latest ED action concerns alleged adulteration, fraudulent supply and the financial trail surrounding the disputed ghee. The allegations remain subject to the ongoing investigation and judicial proceedings.

The latest arrest brings the alleged manufacturing and supply chain into focus rather than concentrating only on the finished Tirupati laddu. The ED's allegations describe a process involving procurement of palm-based oils and chemicals, manufacture at a private facility, documentation and subsequent supply to TTD.

The financial scale cited by the agency is also significant. The ED has put the value of the alleged fraudulent supplies between 2019 and 2024 at Rs 230 crore, while attributing Rs 96 crore of the alleged adulterated ghee to Mangla's company.

At the same time, the distinction between the ED's allegations and independently established findings is important. The ED is investigating alleged money laundering linked to the supply chain, while the CBI-led SIT's findings concerning the presence of animal fat in tested samples have been reported separately.

The case is therefore continuing on multiple investigative fronts, with the latest arrest adding another accused person and alleged manufacturing link to the wider TTD ghee investigation.