ED nabs key accused in 20 cr dairy ‘fraud’ case

Bhopal: The Enforcement Directorate (ED) arrested Kishan Modi, a key suspect in an alleged Rs 20.59 crore money laundering case linked to the export of adulterated dairy products by a Bhopal-based company that marketed items under the brand name Milk Magic, officials said.Officials of the ED's Bhopal Zonal Office said Modi was arrested on March 13 under Section 19(1) of the Prevention of Money Laundering Act (PMLA), 2002 in connection with an ongoing investigation against M/s Jayshri Gayatri Food Products Pvt Ltd (JGFPPL) and its officials. He was produced before the Special PMLA Court in Bhopal on March 14, which remanded him to ED custody till March 18 for further interrogation.The ED probe followed two criminal cases, FIR No. 0492/2023 registered at Habibganj police station, Bhopal, and FIR No. 0027/2024 registered by the Economic Offences Wing (EOW), Bhopal, against the directors and officials of the company under various provisions of the IPC.According to ED officials, the investigation revealed that Jayshri Gayatri Food Products Pvt Ltd manufactured and supplied adulterated dairy products by substituting milk fat with palm oil and other harmful chemicals. The products were sold in the domestic market and also exported to several countries under the brand Milk Magic.Investigators further alleged that the company submitted forged laboratory test reports of reputed laboratories to the Export Inspection Agency (EIA), Indore, to obtain export clearance for the products. However, verification from the laboratories later revealed that several of the test reports were fabricated and had never been issued by them, officials said.On the basis of these forged reports, the company allegedly exported adulterated dairy products and received export proceeds through its bank accounts maintained with Axis Bank and HDFC Bank, the ED said.The agency identified export proceeds worth approximately Rs 20.59 crore as "proceeds of crime" under the PMLA, as the exports were facilitated using forged laboratory certificates.Further investigation is underway to trace the complete money trail and examine the role of other individuals involved in the alleged fraud.