Tirupati Laddu Ghee Scandal: How a Dairy Supplied Fake Ghee Worth ₹250 Crore to Temple Trust

Tirupati, November 10, 2025: A Central Bureau of Investigation (CBI) probe has revealed a massive ghee adulteration scandal involving the Tirumala Tirupati Devasthanams (TTD), the administrative body running the famous Tirupati temple in Andhra Pradesh. According to the investigation, a dairy firm based in Uttarakhand supplied 68 lakh kilograms of fake ghee, valued at ₹250 crore, to the temple trust over a five-year period from 2019 to 2024. This ghee was intended for the preparation of the temple’s iconic laddu prasadam, a sacred offering that millions of devotees consume annually.

The revelations came after the arrest of one of the accused, Ajay Kumar Sugandh, whose interrogation formed a crucial part of the special investigation team (SIT)’s findings. The SIT, operating under the CBI, submitted a detailed remand report before the Nellore court, outlining the mechanics of the ghee adulteration and the methods used to bypass TTD’s checks.

How the fake ghee was produced and supplied

The probe uncovered that the Bhole Baba Organic Dairy, run by promoters Pomil Jain and Vipin Jain, had established a fraudulent desi ghee manufacturing unit. The dairy produced ghee using chemicals such as monodiglycerides and acetic acid ester, supplied to them by Ajay Kumar Sugandh. These chemicals were added to mimic the texture and taste of pure cow ghee, allowing the dairy to pass off adulterated products as genuine.

To maintain credibility, the Bhole Baba promoters forged milk procurement and payment records, creating the illusion of legitimate operations. Despite being disqualified and blacklisted in 2022 for malpractice, the dairy continued to supply adulterated ghee to the TTD by channeling contracts through other dairy firms. These included Vyshnavi Dairy in TirupatiMal Ganga Dairy in Uttar Pradesh, and AR Dairy Foods in Tamil Nadu.

The CBI investigation revealed that during this period, four containers of ghee adulterated with animal fat were initially supplied through AR Dairy and were rejected by the TTD. However, the promoters of Bhole Baba Dairy devised a scheme to return the same adulterated ghee to the temple. The containers were diverted to a local stone crushing unit near the Vyshnavi Dairy plant, rather than returning to AR Dairy as claimed.

Subsequently, in August 2024, Vyshnavi Dairy allegedly rebranded the containers, improving the appearance, consistency, and labeling of the ghee, and supplied it back to TTD, effectively completing the fraudulent cycle. This manipulation enabled adulterated ghee to enter the temple’s supply chain without detection initially, putting the sacred prasadam at risk and potentially affecting the health of devotees consuming it.

The role of intermediaries and chemicals

The CBI report highlights the central role of Ajay Kumar Sugandh in providing chemical additives that allowed the dairy to simulate authentic desi ghee. The combination of monodiglycerides and acetic acid ester helped mask the presence of animal fat and other adulterants. These chemicals, while industrially common, are not meant for human consumption in large quantities, raising serious concerns over food safety and the welfare of devotees.

The Bhole Baba Dairy promoters reportedly exploited a network of subcontracted dairies across multiple states to evade scrutiny. By routing contracts through these intermediaries, they managed to continue their operations even after blacklisting, highlighting significant loopholes in procurement and quality control mechanisms of large institutions like the TTD.

Inspection and forensic findings

The SIT, working alongside FSSAI officials, conducted on-site inspections of AR Dairy’s plant in Dindigul, Tamil Nadu. The investigation confirmed that the four adulterated ghee tankers had never returned to the Tamil Nadu plant and had instead been diverted locally for relabeling and quality enhancement before being sent back to TTD.

This intricate supply chain exposed how fraudulent practices in the dairy sector can penetrate even highly regulated religious institutions. The SIT emphasized that the TTD, despite its reputation for meticulous operations, became a victim of well-orchestrated corporate malfeasance involving falsified records, chemical adulteration, and multi-state logistics manipulation.

Scale and financial implications

The scandal involves a staggering 68 lakh kilograms of ghee, amounting to an estimated ₹250 crore in value over five years. While some adulterated shipments were intercepted and rejected, a significant portion reportedly reached the temple, raising serious ethical and legal questions. The scale of the operation also suggests systematic planning, sophisticated logistics, and deliberate attempts to exploit institutional weaknesses.

Legal and procedural steps

Following the arrest of Ajay Kumar Sugandh, the CBI SIT has begun tracing the entire chain of culpability, including all intermediary dairies involved in supplying ghee to TTD. Court proceedings in Nellore have begun, and further arrests are anticipated as investigations continue. The SIT report emphasizes both criminal liability of the dairy promoters and potential lapses in TTD’s procurement verification mechanisms, underlining the need for stricter oversight in large-scale food supply chains.

The CBI is expected to probe additional aspects, including financial records, procurement documentation, and chemical supply networks, to establish the full extent of the fraud. Regulatory authorities like FSSAI are also likely to conduct independent assessments of safety risks posed to consumers.

Implications for devotees and the temple

The incident has shaken public confidence in one of India’s most revered religious institutions. The Tirumala Tirupati Devasthanams serves millions of devotees annually, and the laddu prasadam is central to its rituals. The revelation that adulterated ghee may have been used in its preparation raises both health and ethical concerns, potentially undermining the sanctity of the offerings and the reputation of the temple.

Broader lessons

The Tirupati laddu ghee scandal highlights multiple vulnerabilities in institutional supply chains:

  • Quality assurance gaps in procurement and verification processes
  • Exploitation of regulatory loopholes by blacklisted suppliers
  • Cross-state logistics networks that allow fraudulent goods to be routed undetected
  • Health and ethical implications for end consumers in large-scale food distribution

Experts suggest that religious institutions, government bodies, and large private organizations must adopt stricter checks, including independent auditing, random sampling, and supply chain transparency, to prevent similar incidents in the future.

Conclusion

The CBI-led SIT’s investigation into the Tirupati ghee adulteration case has uncovered a meticulously orchestrated scam spanning multiple states, involving fake ghee worth ₹250 crore, complex chemical adulteration, and a network of intermediary dairies. With arrests underway and court proceedings active, the case underscores the importance of accountability, transparency, and vigilance in both religious institutions and the food industry. The coming months are expected to shed further light on the full extent of the operation, the identities of additional culprits, and measures to safeguard devotees and public confidence in sacred offerings.


Leave a Reply

Your email address will not be published. Required fields are marked *