Bhopal, March 16 The Enforcement Directorate said on Monday that it has arrested the owner and managing director of a food company based in Madhya Pradesh for allegedly selling "adulterated" dairy products.
Kishan Modi of Jayshri Gayatri Food Products Pvt. Ltd. (JGFPPL) was taken into custody on March 13. He was produced before a special court under the Prevention of Money Laundering Act (PMLA) in Bhopal on March 14, which remanded him in ED custody until March 18, the federal agency said in a statement.
The ED said the company supplied dairy products under the brand name 'Milk Magic' and was allegedly involved in manufacturing adulterated dairy products by substituting milk fat with palm oil and other harmful chemicals.
These products were not only supplied in the domestic market but were also exported to various countries, it said.
The agency said that to facilitate such exports, "forged" laboratory test reports from reputed laboratories were submitted to the Export Inspection Agency (EIA) in Indore to obtain export clearance.
According to the ED, many such reports were "forged" and the concerned laboratories had not issued them.
The company allegedly laundered funds worth Rs 20.59 crore through this alleged illegal activity, the agency said.
The money laundering case stems from an FIR filed by the Bhopal Police against the company and its promoters in August 2023.