Bhopal News: Enforcement Directorate Unravels Gayatri Foods Trail
· Free Press Journal
Bhopal (Madhya Pradesh): The Enforcement Directorate (ED) on Monday arrested Kishan Modi, owner of M/s Jayshri Gayatri Food Products Pvt Ltd, in connection with an alleged multi-layered money laundering operation linked to the dairy firm.
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According to investigators, the company allegedly routed illegal proceeds over several years through adulterated dairy production, forged documents, shell companies and overseas trade channels. The alleged operations between 2019 and 2024 point to a network of financial transactions designed to disguise and circulate illicit funds.
Investigators alleged that the company generated large illegal profits by manufacturing adulterated dairy products such as paneer, ghee and other milk derivatives. Chemicals and oils were allegedly mixed to create low-cost substitutes, which were then sold as pure dairy items.
The firm reportedly procured milk from cooperative unions in Madhya Pradesh under contracts but supplied adulterated products in return, reducing production costs and increasing profit margins.
FORGED LABORATORIES
To market these products in domestic and international markets, the company allegedly used forged laboratory reports claiming that the items met quality standards. Certificates were shown to be issued by laboratories in Jaipur, Gurugram and Noida, but several laboratories later said the reports were either issued to other firms or had not been issued by them.
AES Laboratories Pvt Ltd said some reports belonged to companies such as ITC Limited and Bharat Cereals Pvt Ltd. IRCLASS Systems and Solutions Pvt Ltd and FARE Labs Pvt Ltd also stated that several reports in their names were not authentic.
There were also allegations that forged veterinary certificates and radio-analytical reports were used to obtain export clearances.
SHELL FIRMS OPERATED
Investigators alleged that shell companies were created in the names of relatives and associates of company employee Amit Dhanraj Kuklaud. These entities were used to procure oils and chemicals used in adulteration and to generate fake invoices.
The shell firms allegedly created multiple layers of transactions to conceal the source of funds and inflate the company s turnover through fabricated billing.
The company is also accused of manipulating financial records to evade taxes, including GST and income tax. Investigators alleged that turnover was inflated through fake bills to justify large financial transactions.
The company also allegedly imported old machinery while declaring it as new to claim subsidies and avoid higher import duties.
Overseas firm routed funds
Another channel in the alleged laundering network involved an overseas firm.
Investigators alleged that Modi acquired a company in Dubai named Royal Industries and obtained a residential visa in the name of a sales executive. Materials procured in India in the name of Jayshri Gayatri Food Products were allegedly sent to this company.
The Dubai-based firm was allegedly used to route funds abroad. By exporting products and conducting trade through the overseas entity, funds generated through the alleged adulteration and forged documentation could be transferred out of India.
Officials suspect that this structure enabled layering of profits through international trade transactions, making it difficult to trace the original source of the money.
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