The Enforcement Directorate has made a significant breakthrough in a high-profile case involving extensive adulteration and financial fraud in the dairy industry. The Bhopal Zonal Office of the Directorate of Enforcement has filed a chargesheet against Jayshri Gayatri Food Products Private Limited and its Managing Director, Kishan Modi, under the Prevention of Money Laundering Act on May 11, 2026. The Special Prevention of Money Laundering Act Court in Bhopal has acknowledged the charges after a pre-cognisance hearing.
The investigation has uncovered a troubling operation that produced adulterated dairy products under the Milk Magic brand. The company allegedly engaged in organized fraud by replacing natural milk fat with palm oil and other harmful substances. These compromised products were distributed widely in domestic markets and even exported to foreign countries, posing significant health risks. The Directorate of Enforcement revealed that deceptive methods were used to facilitate international trade.
Under the Prevention of Money Laundering Act, it was found that the company submitted forged laboratory test reports to the Export Inspection Agency, claiming they were from reputable institutions. However, these reports were confirmed to be falsified upon verification by the concerned laboratories. The company allegedly generated illegal proceeds amounting to around Rs 19.69 crore through fraudulent exports of adulterated goods, which were identified as proceeds of crime.
The case stemmed from multiple First Information Reports filed against the company’s directors and officials at the Habibganj Police Station and the Economic Offences Wing in Bhopal. Earlier in the investigation, the Enforcement Directorate had issued a Provisional Attachment Order to seize immovable properties linked to the accused. The Managing Director, Kishan Modi, was arrested on March 13, 2026, followed by the arrest of the then Chief Executive Officer, Sunil Tripathi, on April 20, 2026. Both individuals are currently in judicial custody, while authorities are continuing to investigate the roles of Sunil Tripathi and other key employees to uncover the full extent of the fraudulent network.
