ED attaches assets worth Rs 129.85 crore in TTD ghee adulteration case

The Enforcement Directorate has provisionally attached assets worth Rs 129.85 crore in the alleged TTD ghee adulteration case. The agency alleges that adulterated ghee was supplied through dairy firms and that fictitious transactions were used to mask the operation.

Hyderabad: The Enforcement Directorate (ED) Hyderabad officials have provisionally attached movable and immovable assets worth Rs 129.85 crore belonging to dairy firms, their promoters and related entities in connection with the alleged Tirumala Tirupati Devasthanams (TTD) ghee adulteration fraud.

The attached assets belong to Bhole Baba Oroganic Dairymilk Pvt Ltd, Sri Vyshnavi Dairy Specialities Pvt Ltd, their promoters Vipin Jain and Pomil Jain and their family members, as well as Sukriti Foods Pvt Ltd, its promoter Kailash Chand Mangla and related persons.

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According to the ED, its investigation under the Prevention of Money Laundering Act (PMLA) revealed that adulterated ghee worth Rs 234.5 crore was allegedly supplied to TTD, directly and through front dairies. The ghee was reportedly manufactured by blending refined palm oil, palm kernel oil and palmolein with chemicals, but was invoiced as edible oils, the ED alleged.

Further, ED officials found that fictitious milk and ghee purchases, bogus palm oil sales and false by-product transactions were allegedly recorded to project the appearance of genuine dairy operations. Also, payments against fictitious purchases were reportedly returned in cash through hawala channels and used to finance the fraudulent transactions and pay commissions.

The probe follows an FIR registered at Tirupati East Police Station alleging criminal conspiracy, cheating, forgery and corruption in the supply of adulterated ghee intended for preparing the sacred Lord Venkateswara Laddu Prasadam.

The ED had earlier conducted searches at 16 premises across six States and seized or frozen cash and bank balances worth Rs 2.7 crore. It has subsequently arrested Vipin Jain and Kailash Chand Mangla for their alleged roles in the conspiracy.

With the latest attachment, the total value of assets attached, seized or frozen in the case has reached Rs 132.55 crore. Further investigation is on.