TTD adulterated ghee scam: SIT seeks action against top officials; ED launches money laundering probe

Tirupati/Amaravati: Special Investigation Team (SIT) has recommended disciplinary action against three senior officials in the Tirumala Tirupati Devasthanams (TTD) adulterated ghee scam.

The three officials held key positions during the previous YSRCP government’s tenure. Acting on the SIT’s findings, the state government has decided to transfer the present Executive Officer, with formal orders expected over the weekend.

In a related development, the Enforcement Directorate (ED) has entered the probe, focusing on alleged hawala transactions and large-scale money laundering linked to the scam.

SIT flags lapses by top officials

According to the SIT, disciplinary action should be initiated against the present TTD Executive Officer, Anil Kumar Singhal, former Additional Executive Officer Dharma Reddy, and the Financial Adviser & Chief Accounts Officer (FA&CAO) Balaji.

In a detailed 14-page letter submitted to the government after filing the chargesheet in court, the SIT stated that these officials, while holding senior positions, weakened quality-control norms related to ghee procurement for Srivari Laddu preparation.

The SIT observed that the dilution of standards and lack of diligence in framing and enforcing procurement rules led to a “compromise in the quality of ghee” supplied to TTD.

Procurement rules diluted after 2019

The investigation revealed that soon after the YSRCP came to power in 2019, several stringent norms that existed earlier for ghee procurement were relaxed:

Dairy firms bidding for tenders were no longer required to procure milk directly.

Conditions relating to butter collection and ghee production capacity were removed.

The mandatory requirement of at least three years of operational experience was waived.

Minimum annual turnover eligibility was reduced from Rs 250 crore to Rs 150 crore.

Due to these relaxations, the SIT found that between 2019 and 2024, around 68.17 lakh kilograms of adulterated ghee were supplied to TTD.

ED enters the scene: Focus on hawala, money laundering.

With the Supreme Court-appointed SIT uncovering financial irregularities, the Enforcement Directorate has now taken over the financial trail of the scam, estimated at nearly Rs 235 crore.

ED officials have collected comprehensive case details from the SIT, including:

FIRs and remand reports

Chargesheets filed so far

Details of 36 accused persons

Information on hawala operators across multiple States

Preliminary analysis indicates large-scale money laundering through hawala channels. Sources said an Enforcement Case Information Report (ECIR) under the Prevention of Money Laundering Act (PMLA) is likely to be registered within a day or two, following which notices will be issued to the key accused for questioning.

Hawala trail may expose bigger network

The SIT investigation revealed that directors of Bhole Baba Dairy, Pomil Jain and Vipin Jain, allegedly manufactured adulterated ghee and supplied 59.71 lakh kilograms to TTD through their firm and other dairies such as Vaishnavi, AR, and Malganga, falsely branding it as AGMARK special-grade cow ghee.

The probe further found that hawala payments were routed through agents based in Vijayawada, Chennai, Hyderabad, Gujarat, Delhi, Gwalior, and other locations. The ED is expected to determine:

The total amount routed through hawala

Whether payments extended beyond those identified by the SIT

If any political functionaries or senior officials benefited financially

₹50 lakh hawala payment under scanner

One specific transaction already flagged by the SIT involves an alleged hawala payment of Rs 50 lakh by Jagmohan Gupta, Managing Director of Premier Agri Foods, to K. Chinnappanna, PA to then TTD Trust Board Chairman Y.V. Subba Reddy, reportedly to facilitate ghee supply tenders.

The ED will now verify whether this was a one-time transaction or part of a larger, continuing financial arrangement.

Where did the money go?

A key focus of the ED probe will be tracing the end-use of funds generated through adulterated ghee supply:

Acquisition of assets between 2019 and 2024

Sources of funds for property purchases

Possible benami transactions and undisclosed investments

Officials indicate that several names not previously surfaced during the SIT investigation may emerge as the money trail is unravelled.

With administrative action underway and the ED’s money-laundering probe set to intensify, the adulterated ghee case is now poised to widen into one of the most significant temple-related financial scandals in recent years.