Fake milk-fat reports cost Bhavnagar dairy ₹53 lakh; six arrested
Synopsis
A coordinated insider-outsider conspiracy allegedly cost a Bhavnagar dairy firm ₹53 lakh by replacing genuine milk-fat reports with faked ones. Six people — including a company employee and multiple milk traders — are now in custody, with the Local Crime Branch pursuing remand across three linked cases.
Key Takeaways
Six people arrested in Bhavnagar, Gujarat on 3 October for allegedly falsifying milk-fat testing records.
The alleged fraud caused a financial loss of approximately ₹53 lakh to CRAVE CREAMERY LLP , based at Bhojpara village .
Three separate complaints were filed by company owner Shail Shakunt Apte at Bharatnagar, Velavadar Bhal, and Talaja police stations.
The Local Crime Branch (LCB) has taken over all three cases; police custody remand proceedings are underway.
Cases registered under multiple sections of the Bharatiya Nyaya Sanhita, 2023 , covering criminal conspiracy, cheating, and breach of trust.
Two of the accused — Ratnabhai Mer and Jagdishbhai Tota — have prior criminal records at local police stations.
Six individuals have been arrested in Bhavnagar district, Gujarat, in connection with an alleged criminal conspiracy to falsify milk-fat testing reports and cause a financial loss of approximately ₹53 lakh to CRAVE CREAMERY LLP, a dairy firm based at Bhojpara village, police confirmed on Saturday, 3 October. The case came to light after the company's owner filed three separate complaints at different police stations.
How the Fraud Unfolded
According to police, the company's owner, Shail Shakunt Apte, lodged complaints at Bharatnagar, Velavadar Bhal, and Talaja police stations against different sets of accused. Employees of CRAVE CREAMERY allegedly colluded with external milk traders to substitute genuine milk-fat analysis reports with fabricated ones for milk supplied to the company.
Police allege the accused entered into a pre-planned criminal conspiracy and, acting with a common intention, manipulated the fat-content records to facilitate cheating and cause measurable financial damage to the firm. The total alleged loss amounts to ₹53 lakh, according to the complaints filed.
Six Accused Identified and Arrested
Given the seriousness of the offences, senior officials transferred the investigation across all three cases to the Local Crime Branch (LCB). Separate teams were constituted and conducted searches at locations mentioned in the complaints, leading to the formal arrest of six individuals.
In the Velavadar Bhal police station case, three accused were arrested: Ratnabhai Mer, 27, a milk trader from Ganeshgadh; Shivbhadrasinh Chudasama, 30, a milk trader from Bavaliyali in Dholera taluka; and Gopalbhai Mewada, 23, an employee of CRAVE CREAMERY residing on Tarsamiya Road, Bhavnagar.
The Talaja police station case resulted in the arrest of Jagdishbhai Tota, 38, and Nanubhai Hadgarda, 39, both businessmen from Fulsar village. Meanwhile, Jaydeepbhai Bhuva, 26, who runs a milk dairy in the Ghogha Jakatnaka area of Bhavnagar, was arrested in the case registered at Bharatnagar police station. Proceedings have been initiated to seek police custody remand for all six.
Charges and Legal Provisions
All cases have been registered under multiple sections of the Bharatiya Nyaya Sanhita, 2023, including Sections 316(2), 316(4), 316(5), 318(2), 336(2), 336(3), 338, 340, 344, 3(5), and 61(2), covering offences related to criminal conspiracy, cheating, and breach of trust, among others.
Prior Criminal Records of Key Accused
Police noted that at least two of the arrested individuals have prior criminal histories. Ratnabhai Mer was previously booked at Velavadar Bhal police station under provisions of the Indian Penal Code relating to unlawful assembly, voluntarily causing hurt, rioting, wrongful restraint, criminal intimidation, and damage to property, along with Section 135 of the Gujarat Police Act. Jagdishbhai Tota has a case registered against him at Talaja police station dating back to 2019 under Sections 323, 504, 506(2), and 114 of the Indian Penal Code, as well as Section 135 of the Gujarat Police Act.
Broader Implications for the Dairy Sector
The case highlights a vulnerability in milk procurement chains, where fat-content testing — a key determinant of payment to suppliers — can reportedly be manipulated by insiders colluding with external traders. This is not the first such fraud to surface in Gujarat's dairy ecosystem, and industry observers note that robust third-party auditing of fat-testing equipment and records remains inconsistent across smaller private dairies. The LCB investigation is ongoing, and further arrests have not been ruled out.
Point of View
Evidently, a point of easy manipulation when insiders and traders collude. The involvement of a company employee alongside external milk traders suggests the fraud required access at multiple nodes — not a lone actor. Gujarat's cooperative dairy sector, led by Amul, has invested heavily in automated testing to reduce such exposure, but smaller private dairies often rely on manual or semi-automated processes that are harder to audit. The LCB's involvement signals that authorities view this as more than a routine commercial dispute — and the prior criminal records of at least two accused raise questions about whether adequate background checks were conducted before onboarding suppliers.
NationPress
4 Oct 2026
Frequently Asked Questions
What happened in the Bhavnagar dairy fraud case?
Six people were arrested for allegedly conspiring to replace genuine milk-fat testing reports with fabricated ones, causing a loss of approximately ₹53 lakh to CRAVE CREAMERY LLP in Bhavnagar, Gujarat. The fraud was uncovered after the company's owner filed three separate police complaints.
Who are the six people arrested in the case?
The arrested individuals are Ratnabhai Mer (27), Shivbhadrasinh Chudasama (30), Gopalbhai Mewada (23), Jagdishbhai Tota (38), Nanubhai Hadgarda (39), and Jaydeepbhai Bhuva (26) — a mix of milk traders, a dairy operator, and a company employee, arrested across three linked cases.
Which police unit is investigating the Bhavnagar dairy fraud?
The Local Crime Branch (LCB) of Bhavnagar has taken over the investigation into all three cases, given the seriousness of the alleged offences. Separate teams were formed to conduct searches and make arrests.
What charges have been filed against the accused?
All cases are registered under multiple sections of the Bharatiya Nyaya Sanhita, 2023, including Sections 316(2), 316(4), 316(5), 318(2), 336(2), 336(3), 338, 340, 344, 3(5), and 61(2), covering criminal conspiracy, cheating, and related offences.
How does milk-fat report manipulation cause financial loss to a dairy?
Milk-fat content is a primary determinant of how much a dairy pays its suppliers — higher fat content commands higher prices. By submitting inflated or falsified fat reports, suppliers can claim payments above what the actual milk quality warrants, directly defrauding the purchasing company.
