ED Arrests Kailash Chand Mangla in Tirumala Ghee Adulteration Case
The ED arrested Kailash Chand Mangla in the Tirumala ghee adulteration case and remanded him to judicial custody.
The Directorate of Enforcement's Hyderabad zonal office arrested Kailash Chand Mangla on Thursday, September 17, under Section 19 of the Prevention of Money Laundering Act, 2002, in connection with the alleged ghee adulteration case at Tirumala. He was produced before the PMLA Special Court in Visakhapatnam, which remanded him in judicial custody.
The case traces back to an FIR at the Tirupati East police station alleging criminal conspiracy, cheating, forgery and corruption in the fraudulent supply of adulterated ghee to the Tirumala Tirupati Devasthanams (TTD).
According to the ED's investigation, the adulterated ghee was manufactured using refined palm oil, palm kernel oil, palmolein and other chemicals, including MG-90, monoglycerides, Myvacet Soft 400 and acetic acid ester. The product was then supplied to the TTD as 'Agmark Special Grade cow ghee' for preparing the sacred 'Laddu Prasadam'.
The alleged fraudulent ghee supplies during 2019-2024 were valued at ₹230 crore, of which adulterated ghee worth ₹96 crore was allegedly manufactured by Mangla.
Mangla, promoter of M/s Sukriti Foods Pvt. Ltd., has been named a co-conspirator for allegedly facilitating the procurement of adulterants and manufacturing adulterated ghee at his factory premises. He also allegedly coordinated the supply of the adulterated ghee through front entities, including M/s Sri Vyshnavi Dairy Specialities Pvt. Ltd., M/s Malganga Milk & Agro Products Pvt. Ltd. and M/s A.R. Dairy Foods Pvt. Ltd.
The investigation further revealed 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 create an appearance of legitimate production and supply of genuine cow ghee.
The ED had earlier arrested Vipin Jain, promoter and director of M/s Bhole Baba Organic Dairy Milk Pvt. Ltd., who is alleged to have orchestrated the manufacture and fraudulent supply of adulterated ghee to the TTD.