The Enforcement Directorate has arrested Kailash Chand Mangala, promoter of Sukriti Foods Private Limited, in connection with the alleged adulteration and fraudulent supply of ghee to the Tirumala Tirupati Devasthanams (TTD). The agency alleges that Mangala played a key role in manufacturing adulterated ghee, arranging its supply through front companies and maintaining false records to make the products appear to be genuine cow ghee.
The Hyderabad Zonal Office of the Enforcement Directorate (ED) has arrested Kailash Chand Mangala in connection with the investigation into the alleged adulteration of ghee supplied to the Tirumala Tirupati Devasthanams (TTD). Mangala was arrested on Friday under Section 19 of the Prevention of Money Laundering Act (PMLA), 2002.
Following his arrest, Mangala was produced before the Special Court for PMLA cases in Visakhapatnam, Andhra Pradesh. The court subsequently remanded him to judicial custody.
The ED investigation stems from an FIR registered at the Tirupati East police station. The FIR alleges a wider conspiracy involving cheating, forgery, corruption and the fraudulent supply of adulterated ghee to the temple administration.
According to the ED's investigation, the ghee allegedly supplied to TTD was not made entirely from genuine cow milk fat. The agency has alleged that various substitute ingredients and chemicals were used in its manufacture.
The alleged adulterated mixture included refined palm oil, palm kernel oil and palmolein. Investigators have also identified the alleged use of substances including MG-90, monoglycerides, Myvaset Soft 400 and acetic acid ester.
The resulting product was allegedly marketed and supplied as “Agmark Special Grade Cow Ghee”, creating the appearance that it met the required standards for genuine cow ghee.
The investigation concerns alleged fraudulent supplies made to TTD during the 2019-2024 period. The overall value of the allegedly fraudulent ghee supply has been estimated at around ₹230 crore. Of this amount, the ED has alleged that approximately ₹96 crore worth of adulterated ghee was produced by Mangala.
Mangala, according to the ED, was not merely involved in the manufacturing process but also played a role in facilitating the procurement of ingredients and arranging the movement of the alleged adulterated product.
The agency has identified him as a promoter of M/s Sukriti Foods Private Limited and an alleged co-conspirator in the case. Investigators allege that adulterated ingredients were procured and processed at his factory before the finished product was routed through several companies.
The companies named in the investigation include M/s Shri Vaishnavi Dairy Specialities Private Limited, M/s Malganga Milk & Agro Products Private Limited and M/s AR Dairy Foods Private Limited.
According to the agency, these entities were allegedly used as front companies to facilitate the supply of the adulterated product to TTD.
A key part of the ED's investigation concerns the alleged creation and maintenance of false business records.
The agency alleges that Mangala maintained fabricated or misleading records relating to purchases and sales of ghee and refined palm oil. Investigators believe these records were allegedly designed to conceal the actual ingredients used during production.
The alleged documentation was also intended to create the appearance that the material being manufactured and supplied was genuine cow ghee.
The allegations form part of the ED's broader money-laundering investigation into the financial transactions and business structures surrounding the alleged fraudulent supply.
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