Bhopal, March 16 (IANS) The Enforcement Directorate’s Bhopal Zonal Office has arrested Kishan Modi, a key individual linked to M/s Jayshri Gayatri Food Products Pvt Ltd, in a major money laundering case involving the production and export of adulterated dairy products.

The arrest was made on March 13, 2026 under Section 19(1) of the Prevention of Money Laundering Act (PMLA), 2002.

Modi was produced before the Special PMLA Court in Bhopal the following day, where the court granted the agency custody until March 18, 2026 for detailed interrogation, according to a press note.

The case stems from two predicate offences — an FIR registered on August 29, 2023 at Habibganj Police Station and another filed on July 22, 2024 by the Economic Offences Wing — both targeting the company’s directors and officials under various sections of the Indian Penal Code, the press note said.

Investigations revealed that the firm, which marketed dairy items under the popular brand Milk Magic, systematically replaced milk fat with palm oil and other hazardous chemicals to manufacture adulterated products.

These substandard goods were sold not only within India but also exported to several foreign countries, it said.

To secure export clearances, the company allegedly submitted forged laboratory test reports from reputed testing facilities to the Export Inspection Agency in Indore.

When the Enforcement Directorate cross-verified these documents with the original laboratories, it emerged that many of the reports were fabricated and had never been issued by them, the statement said.

On the basis of these fake certificates, the firm exported the contaminated dairy products and routed the proceeds into accounts held with Axis Bank and HDFC Bank.

The agency has identified export proceeds totalling approximately Rs 20.59 crore as proceeds of crime under the PMLA.

Officials stated that the entire operation involved deliberate deception of regulatory bodies and foreign buyers, putting public health at risk both domestically and internationally.

Kishan Modi’s arrest marks a significant development in the ongoing probe, which is also examining the roles of other directors and the full chain of financial transactions.

The Enforcement Directorate indicated that more arrests and attachments of assets are likely as the investigation progresses.

The development has once again spotlighted concerns over food safety standards and the misuse of export mechanisms for illicit gains in the dairy sector.

–IANS

sktr/pgh

Bhopal, March 16 (IANS) The Enforcement Directorate’s Bhopal Zonal Office has arrested Kishan Modi, a key individual linked to M/s Jayshri Gayatri Food Products Pvt Ltd, in a major money laundering case involving the production and export of adulterated dairy products.

The arrest was made on March 13, 2026 under Section 19(1) of the Prevention of Money Laundering Act (PMLA), 2002.

Modi was produced before the Special PMLA Court in Bhopal the following day, where the court granted the agency custody until March 18, 2026 for detailed interrogation, according to a press note.

The case stems from two predicate offences — an FIR registered on August 29, 2023 at Habibganj Police Station and another filed on July 22, 2024 by the Economic Offences Wing — both targeting the company’s directors and officials under various sections of the Indian Penal Code, the press note said.

Investigations revealed that the firm, which marketed dairy items under the popular brand Milk Magic, systematically replaced milk fat with palm oil and other hazardous chemicals to manufacture adulterated products.

These substandard goods were sold not only within India but also exported to several foreign countries, it said.

To secure export clearances, the company allegedly submitted forged laboratory test reports from reputed testing facilities to the Export Inspection Agency in Indore.

When the Enforcement Directorate cross-verified these documents with the original laboratories, it emerged that many of the reports were fabricated and had never been issued by them, the statement said.

On the basis of these fake certificates, the firm exported the contaminated dairy products and routed the proceeds into accounts held with Axis Bank and HDFC Bank.

The agency has identified export proceeds totalling approximately Rs 20.59 crore as proceeds of crime under the PMLA.

Officials stated that the entire operation involved deliberate deception of regulatory bodies and foreign buyers, putting public health at risk both domestically and internationally.

Kishan Modi’s arrest marks a significant development in the ongoing probe, which is also examining the roles of other directors and the full chain of financial transactions.

The Enforcement Directorate indicated that more arrests and attachments of assets are likely as the investigation progresses.

The development has once again spotlighted concerns over food safety standards and the misuse of export mechanisms for illicit gains in the dairy sector.

–IANS

sktr/pgh