Tirupati laddu scandal: Dairy inflated capacity, SIT reveals.

Tirupati laddu scandal: Dairy inflated capacity, SIT reveals.
  • AR Dairy falsified milk data for TTD tender.
  • Ghee supply chain involved multiple firms.
  • SIT arrested four, alleging adulteration.

The recent arrest of four individuals by a Special Investigation Team (SIT) investigating the alleged adulteration of Tirupati laddus has unveiled a complex web of deceit and regulatory breaches within the supply chain. At the heart of the scandal lies AR Dairy, a Tamil Nadu-based firm that secured a contract to supply ghee to the Tirumala Tirupati Devasthanams (TTD), the governing body of the famous Sri Venkateswara Swamy Temple. The SIT's remand report reveals a calculated scheme by AR Dairy to inflate its milk procurement capacity to meet the TTD's tender requirements. The report explicitly states that AR Dairy, under the direction of its Managing Director, Shri Rajasekharan, submitted falsified documentation claiming a daily milk procurement of 2.52 lakh litres for the year 2022-23. This figure significantly surpasses their actual average procurement, which was determined to be only 1.45 lakh litres per day based on seized documents. This act of deliberate misrepresentation allowed AR Dairy to secure the lucrative contract, highlighting a systemic failure in the TTD's tendering process and oversight.

The investigation further exposes the intricate layers of the ghee supply chain. While AR Dairy held the contract with TTD, it did not directly produce the ghee. Instead, it sourced its supply from Vyshnavi Dairy Specialities Pvt Ltd, which in turn obtained the ghee from Bhole Baba Organic Dairy Pvt Ltd. This multi-layered structure complicates the tracing of the ghee's origin and quality, making it more challenging to pinpoint responsibility for any adulteration. The SIT's findings indicate a deliberate attempt by AR Dairy to obfuscate its actual sourcing practices, potentially to circumvent quality control measures and avoid detection of any substandard ingredients. The discovery that four tankers of ghee supplied by AR Dairy were rejected by TTD due to quality issues in July of the previous year, only to be diverted to Vyshnavi Dairy instead of being returned to AR Dairy, further solidifies the suspicion of intentional concealment and potential fraud.

The investigation also casts a shadow over the corporate governance of Vyshnavi Dairy. The replacement of the original directors, Pomil Jain and Vipin Jain (who have been named as accused persons), with two vehicle drivers on September 1, 2024, raises serious concerns about potential attempts to manipulate the company's records and shield the true perpetrators. This revelation emphasizes the systemic nature of the alleged fraud and highlights the need for a thorough examination of all entities involved in the supply chain. The involvement of multiple companies and the apparent ease with which false documentation was submitted underscore the vulnerability of the TTD's procurement process to manipulation and fraud. The entire incident has ignited a significant political controversy, with allegations of animal fat being used in the preparation of Tirupati laddus during a previous regime. While the opposition party vehemently denied the allegations, the ongoing investigation suggests a more substantial problem of corruption and regulatory negligence.

The formation of the five-member SIT, comprising representatives from the CBI, Andhra Pradesh police, and the Food Safety and Standards Authority of India (FSSAI), underscores the seriousness of the accusations. The Supreme Court's involvement further emphasizes the public interest in this case, particularly given the religious and cultural significance of the Tirupati laddus. The ongoing investigation, therefore, is not just about prosecuting individuals involved in the alleged adulteration but also about establishing robust mechanisms to prevent similar incidents from occurring in the future. The implications extend beyond the immediate scandal, prompting a broader examination of procurement processes within religious institutions and the need for stricter quality control measures throughout the food supply chain. The case serves as a stark reminder of the importance of transparency, accountability, and ethical conduct in the management of public resources and religious offerings.

Source: Tirupati laddu case: AR Dairy inflated capacity to meet TTD's tender requirement, says SIT

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