The Enforcement Directorate (ED) has arrested Kailash Chand Mangla, promoter of Sukriti Foods Pvt Ltd, in connection with a money laundering investigation into the alleged adulteration of ghee used to prepare Tirupati Laddu prasadam.
Mangla was arrested by the ED's Hyderabad office on September 17 under the Prevention of Money Laundering Act (PMLA). He was subsequently produced before a special PMLA court in Visakhapatnam, which sent him to judicial custody, the agency said.
According to the ED, 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 various chemicals. These included MG-90, monoglycerides, Myvacet Soft 400 and acetic acid ester.
The agency alleged that fraudulent ghee supplies to TTD between 2019 and 2024 were worth around Rs 230 crore. Of this, approximately Rs 96 crore worth of allegedly adulterated ghee was manufactured by Mangla at his factory, the ED claimed.
The ED further alleged that Mangla facilitated the procurement of adulterants and coordinated the supply of the allegedly adulterated ghee through entities including Sri Vyshnavi Dairy Specialities, Malganga Milk & Agro Products and A.R. Dairy Foods.
The agency also accused Mangla of creating and maintaining false records relating to the purchase and sale of ghee and refined palm oil. According to the ED, the alleged records were intended to conceal the use of adulterants and make the supplies appear to be genuine cow ghee.
The money laundering investigation stems from an FIR registered at Tirupati East Police Station concerning alleged criminal conspiracy, cheating, forgery and corruption linked to the supply of ghee to TTD.
Mangla's arrest comes after the ED earlier arrested Vipin Jain, promoter and director of Bhole Baba Organic Dairy Milk, in connection with similar allegations.
The allegations against Mangla are part of an ongoing investigation and have not been established by a court.
