The dairy’s criminal operation was shockingly brazen: the CBI determined that the company never procured a single drop of milk or butter from any source. Instead, the promoters, Pomil Jain and Vipin Jain, established a fraudulent “desi ghee manufacturing unit” and meticulously forged all milk procurement and payment records. The SIT’s findings, detailed in its remand report to a Nellore court, highlight that the dairy’s product was purely synthetic, created using various chemicals like monodiglycerides and acetic acid ester, which were supplied by the recently arrested accused, Ajay Kumar Sugandh.

Despite being disqualified and blacklisted by the TTD in 2022, the dairy promoters successfully circumvented the ban and continued their fraudulent supply chain. They achieved this by bidding for and winning contracts through a network of shell or collaborating dairies, specifically naming Vyshnavi dairy (Tirupati-based), Mal Ganga (UP-based), and AR Dairy Foods (Tamil Nadu-based). This sustained deception allowed the flow of spurious product to continue uninterrupted to the religious trust for five years.

The SIT probe also exposed a specific instance of deliberate product recycling and re-entry into the supply chain. Four containers of ghee stocks, flagged and rejected by the TTD in July 2024 due to alleged adulteration with animal fat, were tracked by officials from FSSAI and the SIT. Instead of being returned to the original supplier, AR Dairy, the tankers were diverted to a local stone crushing unit near the Vyshnavi dairy plant.