Tirupati Laddu row: Ghee made using palm oil, chemicals, says ED; company owner arrested

The Enforcement Directorate (ED) has arrested Kailash Chand Mangla, promoter of Sukriti Foods, in connection with the alleged adulteration of ghee supplied for the preparation of Tirupati Laddu prasadam, the agency said on Friday.

The arrest is part of the federal agency’s money laundering investigation into alleged fraudulent supplies to the Tirumala Tirupati Devasthanams (TTD).

According to the ED statement cited by PTI, Mangla was arrested by the agency’s Hyderabad office on September 17. He was subsequently produced before a special Prevention of Money Laundering Act (PMLA) court in Visakhapatnam, which sent him to judicial custody.

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The ED alleged that its investigation found that adulterated ghee used in the preparation of Tirupati Laddu prasadam was manufactured using refined palm oil, palm kernel oil, palmolein and several chemicals.

The agency said the substances allegedly used included “MG-90, Monoglycerides, Myvacet Soft 400 and Acetic Acid Ester.” The adulterated product was then allegedly supplied as Agmark Special Grade Cow Ghee for use by TTD.

PTI reported that the ED has alleged fraudulent supplies of ghee to TTD between 2019 and 2024 were worth approximately ₹230 crore. Of this amount, around ₹96 crore worth of adulterated ghee was allegedly manufactured by Mangla, according to the agency.

The ED described Mangla as one of the alleged co-conspirators in the case. It claimed that he facilitated the procurement of adulterants and manufactured the adulterated ghee at his factory premises.

The agency further alleged that Mangla coordinated the supply of the adulterated ghee through several front entities.

“He also coordinated the supply of adulterated ghee through various front entities, including Sri Vyshnavi Dairy Specialities, Malganga Milk & Agro Products and A.R. Dairy Foods,” the ED said, according to PTI.

The agency also alleged that Mangla created and maintained false records concerning the sale and purchase of ghee and refined palm oil. According to the ED, this was allegedly done to conceal the actual use of adulterants and create the appearance of legitimate production and supply of genuine cow ghee.

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The ED said Mangla’s alleged activities formed part of a wider conspiracy involving the supply of adulterated ghee to TTD.

The agency had earlier arrested Vipin Jain, promoter and director of Bhole Baba Organic Dairy Milk, in connection with the case on similar allegations.

The Tirupati Laddu controversy had earlier triggered concerns over the quality and composition of ghee allegedly used in the preparation of the famous prasadam. The latest arrest comes as the ED continues its investigation into the alleged financial and supply-chain irregularities surrounding the procurement of ghee by TTD.

(With inputs from PTI)