ED files PMLA chargesheet against Milk Magic firm, MD Kishan Modi in Bhopal
Synopsis
A Bhopal dairy firm marketed adulterated ghee and dairy products under the Milk Magic brand by swapping milk fat with palm oil — then used forged lab reports to pass export inspections. The ED says the racket generated ₹19.69 crore in crime proceeds, with the MD and CEO both now in judicial custody.
Key Takeaways
The ED filed a PMLA chargesheet against Jayshri Gayatri Food Products Pvt Ltd and MD Kishan Modi on 11 May 2026 .
The Special PMLA Court in Bhopal has taken formal cognisance of the charges.
The company allegedly substituted natural milk fat with palm oil in products sold under the Milk Magic brand.
Forged laboratory test reports were submitted to the Export Inspection Agency to secure export clearances.
Proceeds of crime estimated at approximately ₹19.69 crore , routed through multiple bank accounts.
Kishan Modi was arrested on 13 March 2026 ; CEO Sunil Tripathi was arrested on 20 April 2026 — both remain in judicial custody.
The Directorate of Enforcement (ED) on 11 May 2026 filed a chargesheet against Jayshri Gayatri Food Products Private Limited and its Managing Director Kishan Modi under the Prevention of Money Laundering Act (PMLA) before a special court in Bhopal, in a case involving large-scale dairy adulteration and financial fraud. The Special PMLA Court in Bhopal has since taken formal cognisance of the charges following a pre-cognisance hearing.
The Adulteration Racket
According to the ED, the company — which markets dairy products under the Milk Magic brand — engaged in organised fraud by substituting natural milk fat with palm oil and other harmful substances. These adulterated products were distributed extensively across domestic markets and were also exported to foreign countries, posing a significant public health risk.
Forged Lab Reports and Export Fraud
The agency revealed that the firm submitted forged laboratory test reports, purportedly from reputed institutions, to the Export Inspection Agency to obtain mandatory export clearances. Upon verification, the laboratories concerned confirmed that the reports were fabricated. Through these fraudulent exports, the company generated proceeds of crime amounting to approximately ₹19.69 crore, which were subsequently routed through various bank accounts and formally identified as proceeds of crime.
Arrests and Custody
Managing Director Kishan Modi was arrested on 13 March 2026, followed by the arrest of then Chief Executive Officer Sunil Tripathi on 20 April 2026. Both officials remain in judicial custody. The case originated from multiple First Information Reports registered at the Habibganj Police Station and the Economic Offences Wing in Bhopal against the directors and officials of the company. Earlier in the investigation, the ED had also issued a Provisional Attachment Order to seize immovable properties linked to the accused.
Investigation Ongoing
Authorities have indicated that the probe into the roles of Sunil Tripathi and other key employees is still ongoing, as the agency continues to unravel the full extent of the alleged organised fraudulent network. The chargesheet marks a significant escalation in what investigators describe as a systematically run operation that compromised food safety standards at both domestic and international levels.
Point of View
Not just a one-off fraud. With ₹19.69 crore in alleged crime proceeds and products reaching foreign markets, the reputational cost to Indian dairy exports could far exceed the financial penalty. The ongoing probe into other employees signals the ED believes this was not a two-man operation — and the full network is yet to be mapped.
NationPress
8 Jul 2026
Frequently Asked Questions
What is the ED case against Jayshri Gayatri Food Products?
The Directorate of Enforcement filed a PMLA chargesheet on 11 May 2026 against Jayshri Gayatri Food Products Private Limited and its Managing Director Kishan Modi for allegedly manufacturing and exporting adulterated dairy products under the Milk Magic brand. The company is accused of generating ₹19.69 crore in proceeds of crime through fraudulent exports.
How did the company carry out the dairy adulteration fraud?
According to the ED, the company substituted natural milk fat with palm oil and other harmful substances in its dairy products. It then submitted forged laboratory test reports to the Export Inspection Agency to obtain export clearances, which the concerned laboratories later confirmed were fabricated.
Who has been arrested in the Milk Magic dairy fraud case?
Managing Director Kishan Modi was arrested on 13 March 2026, and then-CEO Sunil Tripathi was arrested on 20 April 2026. Both remain in judicial custody as of the chargesheet filing date.
What court is hearing the Milk Magic PMLA case?
The Special Prevention of Money Laundering Act Court in Bhopal has taken formal cognisance of the charges following a pre-cognisance hearing after the ED filed its chargesheet.
Is the investigation into the dairy fraud still ongoing?
Yes, the ED has indicated that the probe into the roles of Sunil Tripathi and other key employees of the company is still ongoing, as authorities work to establish the full extent of the alleged fraudulent network.
