Bhopal News: PMLA; Food Unit’s Owner Held In ₹20.59 Crore Laundering Case

Bhopal (Madhya Pradesh): The ED, Bhopal, has arrested Kishan Modi, owner of M/s Jayshri Gayatri Food Products Pvt Ltd, under the Prevention of Money Laundering Act (PMLA), officials said on Monday. A special court remanded him to ED custody till March 18.

The arrest was made during a money laundering investigation based on an FIR registered at Habibganj police station in Bhopal and another FIR lodged by the Economic Offences Wing (EOW) on July 22, 2024, under various sections of the Indian Penal Code (IPC) against directors and officials of the company for allegedly using fake and fabricated laboratory reports.

Investigations revealed that the company, which supplied dairy products under the brand name Milk Magic, was involved in manufacturing adulterated dairy products by substituting milk fat with palm oil and other harmful chemicals.

These products were supplied not only in the domestic market but were also exported to several countries.

To facilitate such exports, forged laboratory test reports of reputed laboratories were allegedly submitted before the Export Inspection Agency (EIA), Indore, to obtain export clearance.

However, verification from the concerned laboratories revealed that many such reports were forged and had not been issued by them.

Further investigation revealed that on the basis of these forged laboratory reports, M/s Jayshri Gayatri Food Products Pvt Ltd exported adulterated dairy products and received export proceeds in its bank accounts maintained with Axis Bank and HDFC Bank.

The ED said export proceeds amounting to approximately Rs 20.59 crore were generated through exports supported by forged laboratory reports. The amount has been identified as proceeds of crime under provisions of the PMLA.

Modi was arrested on March 13 and produced before the Special Court (PMLA), Bhopal, on March 14. The court granted ED custody till March 18 for further investigation.