ED Freezes Assets Worth Rs 20.59 Crore in Bhopal Dairy Fraud Case
Synopsis
In a striking investigation, the ED has provisionally seized 11 properties linked to a dairy company accused of producing adulterated products. This case highlights serious concerns over public health and regulatory compliance in the dairy industry.
Key Takeaways
11 properties worth Rs 20.59 crore seized.
Investigation linked to adulterated dairy products .
Company accused of forging laboratory reports .
Proceeds identified as 'proceeds of crime' under PMLA.
Ongoing investigations may lead to further actions.
Bhopal, March 18 (NationPress) The Enforcement Directorate (ED), operating from the Bhopal Zonal Office, has provisionally seized 11 properties valued at Rs 20.59 crore that belong to M/s Jayshri Gayatri Food Products Pvt Ltd and its Managing Director, Kishan Modi, under the Prevention of Money Laundering Act (PMLA), 2002.
This seizure was initiated as part of an ongoing investigation into money laundering connected with the production, distribution, and export of contaminated dairy products.
The firm, known for its brand 'Milk Magic', is accused of manufacturing tainted dairy products by replacing milk fat with palm oil and other hazardous substances.
These adulterated products were sold in the domestic market and exported internationally. To secure export approvals from the Export Inspection Agency (EIA) in Indore, the company reportedly submitted forged laboratory test reports from established laboratories.
Subsequent verification with the involved laboratories confirmed that many of these reports were fabricated and had never been issued.
Investigations revealed that based on these falsified documents, Jayshri Gayatri Food Products Pvt Ltd exported the substandard items and accrued export proceeds totaling approximately Rs 20.59 crore in its accounts held at Axis Bank and HDFC Bank.
The ED has classified these proceeds as 'proceeds of crime' under the PMLA.
The investigation originated from two FIRs—one filed on August 29, 2023, at Habibganj Police Station in Bhopal, and the second on July 22, 2024, by the Economic Offences Wing (EOW), Bhopal—against the company's directors and officials under various provisions of the Indian Penal Code.
Previously, Kishan Modi was arrested by the ED on March 13, 2026, under Section 19(1) of the PMLA. He was subsequently presented before the Special PMLA Court in Bhopal, which granted the agency custody until March 18, 2026.
The court later remanded him to judicial custody on March 18.
The investigation, initiated based on the FIRs, has exposed a systematic fraud involving large-scale adulteration, document forgery, and the laundering of illicit export revenues.
The properties that have been seized include 11 assets associated with the company and its Managing Director.
Further inquiries are ongoing, with the ED expected to take additional actions, including further arrests and property seizures, to dismantle the alleged network that jeopardized public health through inferior and harmful dairy products while generating significant illicit revenue.
Frequently Asked Questions
What is the reason for the ED's asset attachment?
The ED attached the assets as part of an investigation into money laundering related to the production and export of adulterated dairy products.
How much money is involved in this fraud case?
The total value of the properties attached by the ED is Rs 20.59 crore.
Who is the Managing Director of the involved company?
The Managing Director of M/s Jayshri Gayatri Food Products Pvt Ltd is Kishan Modi.
What kind of products were being exported?
The company was accused of exporting adulterated dairy products by substituting milk fat with harmful chemicals.
What steps are being taken by the ED now?
The ED is continuing its investigation and may pursue additional arrests and asset attachments to disrupt the alleged fraudulent activities.
