₹96 Crore Adulteration Scam: ED Arrests Ghee Supplier, Says Tirupati Laddu Made with Palm Oil and Chemicals

HYDERABAD — The Enforcement Directorate (ED) has arrested Kailash Chand Mangla, promoter of Sukriti Foods, in connection with the alleged adulteration of ghee supplied to the Tirumala Tirupati Devasthanams (TTD), revealing that the sacred Tirupati Laddu prasadam was manufactured using refined palm oil, palmolein, and various chemicals instead of pure cow ghee.

In a detailed statement released on Friday, the federal probe agency alleged that the adulterated ghee supplied to TTD between 2019 and 2024 was fraudulently passed off as Agmark Special Grade Cow Ghee, despite being manufactured using Refined Palm Oil, Palm Kernel Oil, Palmolein, and chemical additives including MG-90, Monoglycerides, Myvacet Soft 400, and Acetic Acid Ester.

The total value of fraudulent ghee supplies to TTD during the five-year period was approximately ₹230 crore, with Mangla's company allegedly responsible for manufacturing ₹96 crore worth of adulterated product.

Arrest and Judicial Custody
Mangla was arrested on September 17, 2026, by the ED's Hyderabad office and subsequently produced before a special Prevention of Money Laundering Act (PMLA) court in Visakhapatnam, which remanded him to judicial custody.

According to the ED's investigation, Mangla was one of the key co-conspirators in the case who facilitated the procurement of adulterants and manufactured the substandard ghee at his factory premises.

He allegedly coordinated the supply of adulterated ghee through various front entities, including Sri Vyshnavi Dairy Specialities, Malganga Milk & Agro Products, and A.R. Dairy Foods.

False Records and Deception
The agency alleged that Mangla created and maintained false records relating to the sale and purchase of ghee and refined palm oil, with the objective of concealing the actual utilization of adulterants and creating an appearance of legitimate production and supply of genuine cow ghee.

This case marks a significant development in the ongoing investigation into the adulteration of ghee supplied to one of India's most revered Hindu temples. The ED had previously arrested Vipin Jain, promoter and director of Bhole Baba Organic Dairy Milk, on similar charges in connection with the same scam.

Background and Previous Investigations
The adulteration scandal first came to light through a CBI-led Special Investigation Team (SIT), which found that approximately 68 lakh kilograms of adulterated ghee had been supplied to TTD.

The SIT had conducted raids at 15 locations across six states in June 2026, uncovering assets worth over ₹45 crore and seizing incriminating documents.

The revelation has sparked widespread outrage among devotees and raised serious questions about quality control and supply chain integrity for religious offerings at one of India's wealthiest and most visited temples.
The ED's money laundering investigation continues as authorities work to trace the financial trails and identify other potential conspirators involved in the large-scale adulteration scheme.