The criminal operation was alarmingly simple yet highly profitable. The accused was found to be diluting authentic ghee by mixing it with significantly cheaper palm oil and other fats. The data illustrates the scale of the fraud: the process successfully transformed 1 litre of genuine Nandini ghee into 5 litres of adulterated product. This counterfeit product was manufactured in Tamil Nadu, filled into fraudulent Nandini sachets and plastic bottles, and subsequently funneled through the official distribution channels to retail outlets and official Nandini parlours at the full market price.

The intricate scheme was ultimately exposed due to a simple but critical anomaly in the supply data. KMF Vigilance officials were alerted when Mahendra, who typically placed large, consistent orders, suddenly and suspiciously began reducing his ghee purchases, dropping his volume from 100 litres to just 50 litres in recent months. This sharp and unexplained reduction in demand served as the red flag that triggered a dedicated investigation, successfully pinpointing the substitution strategy.

The enforcement phase was executed through a highly coordinated joint operation involving the City Crime Branch (CCB) Special Investigation Squad and the KMF Vigilance Wing. The raids led to the arrest of four accused and the seizure of substantial evidence. Authorities confiscated 8,136 litres of adulterated ghee, along with large volumes of palm and coconut oil, the machinery used for the adulteration process, four goods vehicles, and cash. The total value of the seized property was estimated at approximately ₹1.27 crore.