Bhopal, March 16 (NationPress) In a significant crackdown, the Enforcement Directorate's Bhopal Zonal Office has detained Kishan Modi, a pivotal figure associated with M/s Jayshri Gayatri Food Products Pvt Ltd, amid a serious money laundering investigation linked to the manufacturing and distribution of adulterated dairy products.

The arrest occurred on March 13, 2026, under the provisions of Section 19(1) of the Prevention of Money Laundering Act (PMLA), 2002.

Following his arrest, Modi was presented to the Special PMLA Court in Bhopal, where he was remanded in custody until March 18, 2026, for further questioning, as per an official press release.

The case arises from two initial offences: a FIR lodged on August 29, 2023, at Habibganj Police Station, and another complaint filed on July 22, 2024, by the Economic Offences Wing, targeting various company directors and officials under several sections of the Indian Penal Code.

Investigations uncovered that the company, which sold dairy products under the well-known brand Milk Magic, systematically substituted milk fat with palm oil and other harmful substances, resulting in the production of contaminated goods.

These inferior products were not just sold domestically but were also exported to numerous international markets.

To obtain export permits, the company allegedly provided forged laboratory test reports from reputable testing organizations to the Export Inspection Agency in Indore.

Upon the Enforcement Directorate's verification, it was revealed that many of these reports were counterfeit and had never been issued by the respective laboratories.

Using these fraudulent certificates, the company exported the tainted dairy products and funneled the proceeds into accounts at Axis Bank and HDFC Bank.

The agency has traced export proceeds amounting to approximately Rs 20.59 crore, classified as proceeds of crime under the PMLA.

Officials expressed that the entire scheme involved a calculated deception of regulatory authorities and international buyers, endangering public health both in India and abroad.

The detention of Kishan Modi signifies a crucial advancement in the ongoing investigation, which is also scrutinizing the involvement of other directors and the complete network of financial transactions.

The Enforcement Directorate has indicated that additional arrests and asset seizures are anticipated as the inquiry unfolds.

This incident highlights pressing concerns regarding food safety standards and the exploitation of export processes for illicit financial gain in the dairy industry.