ED Files Prosecution Complaint Against Jayshri Gayatri Food Products In ₹19.69 Crore Dairy Adulteration Case

Bhopal (Madhya Pradesh): Directorate of Enforcement, Bhopal, has filed a Prosecution Complaint (PC) against Jayshri Gayatri Food Products Pvt Ltd and its Managing Director Kishan Modi under the provisions of the Prevention of Money Laundering Act before the Special Court (PMLA), Bhopal, officials said on Wednesday.

The case pertains to large-scale adulteration of milk products affecting society at large. The action undertaken in the matter represents a major breakthrough in uncovering organised adulteration and fraudulent export activities involving dairy products.

The ED initiated the investigation on the basis of FIRs registered at Habibganj police station, Bhopal, and the Economic Offences Wing, Bhopal, under various provisions of the IPC against the directors and officials of the company.

Investigation revealed that the company, engaged in the business of dairy products under the brand name Milk Magic, was involved in large-scale adulteration by substituting milk fat with palm oil and other substances.

These adulterated products were supplied in domestic markets as well as exported to foreign countries. To facilitate exports, forged laboratory test reports of reputed laboratories were submitted before the Export Inspection Agency to obtain export clearance.

Verification from the concerned laboratories confirmed that several such reports were forged. Further investigation revealed that, on the basis of these forged reports, the company exported adulterated dairy products and generated proceeds of crime amounting to approximately Rs 19.69 crore, which were routed through its bank accounts. These proceeds have been identified as "proceeds of crime" under the provisions of the PMLA.

The ED had earlier issued a Provisional Attachment Order attaching immovable properties in the case.

The ED had earlier arrested Kishan Modi, Managing Director of the company, and Sunil Tripathi, the then CEO, on March 13, 2026, and April 20, 2026, respectively. Both are presently under judicial custody.

Investigation involving Sunil Tripathi and other key employees of the company is currently underway.