Money Investigation Starts for Tirupati Laddu Ghee

The Enforcement Directorate is now looking into the money side of the Tirupati laddu ghee case. This follows earlier findings that fake ghee might have been used. The investigation will check for money laundering and illegal money transfers.
By Newsroom | Crime, India |

The Enforcement Directorate (ED) has initiated a money laundering investigation into allegations surrounding the supply of adulterated ghee for the famous Tirupati laddus. This inquiry broadens the scope beyond initial findings of food safety violations to examine the financial aspects and potential illicit fund flows connected to the procurement process.

The Special Investigation Team (SIT) has already compiled significant data on ghee supplies to the Tirumala Tirupati Devasthanams (TTD). This evidence now forms the basis for the ED's examination of financial transactions.

Background of the Allegations

The controversy centers on claims that a substantial quantity of ghee supplied to the TTD for its 'laddu prasadam' was, in fact, chemically processed palmolein oil and other ingredients.

ED steps into Tirumala laddu ghee adulteration case - 1

  • Volume and Value: TTD Chairman B.R. Naidu stated in January that approximately 60 lakh kg of allegedly adulterated ghee, valued at about Rs. 250 crore, was supplied during the tenure of the previous YSRCP government.

  • Nature of Adulteration: According to SIT findings, the material sold as ghee to the Sri Venkateswara Swamy temple was a substitute, not pure ghee.

  • Political Context: The issue gained political traction in September 2024 when the then Chief Minister N. Chandrababu Naidu alleged the use of animal fat in preparing the laddus under the preceding Y.S. Jagan Mohan Reddy administration.

Official Investigations and Accusations

Multiple investigative bodies have been involved, with the SIT filing its initial findings and the ED now focusing on financial crimes.

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  • SIT Findings: A Special Investigation Team (SIT) probe, which gathered extensive data on ghee supplies, resulted in a chargesheet filed on January 23 before the ACB court in Nellore.

  • Accused: The SIT named 36 individuals as accused. This group includes:

  • Nine Tirumala Tirupati Devasthanams (TTD) officials.

  • Five dairy experts.

  • Directors of dairy companies.

  • Intermediaries.

  • External experts.

  • ED's Mandate: The ED's registration of an Enforcement Case Information Report (ECIR) under the Prevention of Money Laundering Act (PMLA) signifies a shift towards investigating financial irregularities and potential money laundering. This probe aims to trace the alleged money trail linked to the procurement process and investigate claims of private dairy firms and intermediaries routing bribe payments through hawala channels.

  • State Government Review: The ED's involvement follows an announcement by the Andhra Pradesh government to establish a one-man committee for a comprehensive review of the SIT's report and to recommend administrative actions.

Financial Aspects Under Scrutiny

The ED's investigation is primarily concerned with the financial flows connected to the alleged adulteration scheme.

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  • Estimated Value: The reported value of the allegedly adulterated ghee supplied stands at approximately Rs. 250 crore.

  • Potential Hawala Links: Investigators are examining allegations that bribe payments were channeled through informal or illegal financial networks, known as hawala, to facilitate tender processes and quality approvals.

  • Specific Payouts: Reports suggest significant amounts were paid to individuals connected to the supply chain, with a portion going to Vaishnavi Dairy chairman Apurva Chawla and Rs. 75 lakh reportedly paid to TTD Dairy expert Vijay Bhaskar Reddy.

Scope and Future Implications

The ED's entry into the case significantly expands the investigation's reach, moving beyond food quality concerns to potential financial crimes.

  • Widened Scope: The ED's probe is described as extending "far beyond food safety violations," focusing on the financial dimensions of the alleged scam.

  • Potential for Progress: With the involvement of both central agencies, it is anticipated that there could be significant progress in uncovering the full extent of the alleged irregularities and holding responsible parties accountable.

Sources Used

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Frequently Asked Questions

Q: What is the new investigation about?
The Enforcement Directorate is investigating if money was laundered in the case of fake ghee used for Tirupati laddus.
Q: How much money is involved?
About 250 crore rupees worth of fake ghee might have been supplied.
Q: Who is being investigated?
The investigation includes TTD officials, dairy company people, and others involved in supplying the ghee.
Q: What is money laundering?
Money laundering is when illegal money is made to look like it came from a legal source.