Bhopal, May 12 The Directorate of Enforcement has achieved a major breakthrough in a high-profile case involving large-scale adulteration and financial fraud within the dairy industry.
The Bhopal Zonal Office of the Directorate of Enforcement officially filed a chargesheet against Jayshri Gayatri Food Products Private Limited and its Managing Director, Kishan Modi, under the provisions of the Prevention of Money Laundering Act on May 11, 2026.
Following a pre-cognisance hearing, the Special Prevention of Money Laundering Act Court in Bhopal has taken formal cognisance of the charges.
The investigation exposes a deeply concerning operation involving the manufacture of adulterated dairy products marketed under the Milk Magic brand.
According to the Directorate of Enforcement, the company engaged in organised fraud by substituting natural milk fat with palm oil and other harmful substances. These compromised products were not only distributed extensively across domestic markets but were also exported to foreign countries, posing a significant health risk to society at large.
The federal agency revealed that the company utilised highly deceptive methods to facilitate its international trade.
An investigation under the Prevention of Money Laundering Act showed that the firm submitted forged laboratory test reports, purportedly from reputed institutions, to the Export Inspection Agency to obtain the necessary clearances.
Upon verification, the concerned laboratories confirmed that these reports were indeed fabricated.
Through these fraudulent exports of adulterated goods, the company generated proceeds of crime amounting to approximately Rs 19.69 crore, the Directorate of Enforcement said.
These funds were routed through various bank accounts and have been formally identified as proceeds of crime.
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 Directorate of Enforcement had issued a Provisional Attachment Order to seize immovable properties linked to the accused.
Managing Director Kishan Modi was arrested on March 13, 2026, followed by the arrest of the then Chief Executive Officer, Sunil Tripathi, on April 20, 2026.
Both high-ranking officials remain in judicial custody.
Authorities have indicated that the investigation into the roles of Sunil Tripathi and other key employees is still ongoing, as the agency continues to unravel the full extent of this organised fraudulent network.
--IANS
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