The Enforcement Directorate struck a financial blow against the dairy sector on Wednesday, attaching assets worth ₹129.85 crore from companies that fed adulterated ghee into the Tirumala Tirupati Devasthanams (TTD) system. The central agency accused Bhole Baba Organic Dairymilk, Sri Vyshnavi Dairy Specialities, and Sukriti Foods of laundering money through hawala networks. This follows a massive fraudulent supply chain valued at ₹234.5 crore, intended for the sacred Lord Venkateswara Laddu Prasadam.
The scheme was deceptively simple. Factories blended refined palm oil, palm kernel oil, and palmolein with chemicals like monoglycerides and acetic acid ester. They then invoiced this mixture as pure edible oils. To keep the books clean, the ED alleged, the companies recorded fictitious purchases of milk and sales of by-products like skimmed milk. Payments for these fake transactions flowed through banks, only to return as cash via hawala channels, funding commissions for front dairies and bogus buyers.
The investigation traces back to an FIR filed by the Andhra Pradesh Police’s Tirupati East Police Station. Officers alleged a criminal conspiracy to cheat the temple body and endanger public health. During searches across multiple states in June, the ED arrested promoters Vipin Jain and Kailash Chand Mangla. The agency now seeks to recover the unlawful gains under the Prevention of Money Laundering Act (PMLA).
The court will now decide on the final amount to be retained. Prosecutors plan to argue that the cash flow proves the intent to launder proceeds of crime. For millions of devotees who consume the laddu, the revelation underscores a breach of trust in one of India’s most revered religious institutions.