Bhopal, May 13: The Enforcement Directorate (ED) has achieved a significant breakthrough in a high-profile case involving large-scale adulteration and financial fraud in the dairy industry.
On May 11, 2026, the ED’s regional office in Bhopal officially filed charges against Jayashree Gayatri Food Products Private Limited and its Managing Director, Kishan Modi, under the provisions of the Prevention of Money Laundering Act.
Following a preliminary hearing, a special court in Bhopal has formally acknowledged the allegations.
The investigation has revealed a concerning network linked to the production of adulterated dairy products sold under the Milk Magic brand.
According to the ED, the company engaged in organized fraud by substituting natural milk fat with palm oil and other harmful substances. These adulterated products were not only widely distributed in domestic markets but were also exported abroad, posing serious health risks to the public.
The federal agency disclosed that the company employed highly misleading methods to facilitate its international trade.
The investigation under the Prevention of Money Laundering Act found that the company allegedly submitted counterfeit laboratory test reports obtained from reputable institutions to secure necessary approvals from the export inspection agency.
Upon investigation, the relevant laboratories confirmed that these reports were indeed fabricated.
The ED reported that through these fraudulent exports of adulterated goods, the company generated approximately ₹19.69 crore in criminal proceeds.
This amount was transferred through various bank accounts and has been formally recognized as criminal income.
This case stems from multiple FIRs filed against the company’s directors and officials at Habibganj Police Station and Bhopal’s Economic Offences Wing.
In the initial stages of the investigation, the ED issued a temporary attachment order to seize assets linked to the accused.
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