ED registers money laundering case in Tirupati laddu ghee scam

The Enforcement Directorate (ED) has registered a money laundering case to probe the alleged ghee adulteration scam linked to the preparation of laddu prasadam at the Tirumala temple in Andhra Pradesh’s Tirupati, official sources said. The case has been booked under the Prevention of Money Laundering Act (PMLA) following inputs and a final chargesheet filed by a CBI-led Special Investigation Team (SIT) , which uncovered large-scale irregularities in the procurement and supply of ghee to the Tirumala Tirupati Devasthanams (TTD).

According to officials, the SIT has named 36 accused , including nine TTD officials, five dairy experts, suppliers and intermediaries , alleging that adulterated material was supplied as ghee for preparing the sacred laddus. The chargesheet claims that the ghee was largely chemically processed palmolein, palm and palm kernel oil , mixed with additives such as beta-carotene and flavouring agents to mimic the colour, aroma and texture of genuine dairy ghee and evade routine quality checks. Investigators have estimated that nearly 60–68 lakh kg of adulterated ghee , valued at around Rs 234–250 crore , was supplied to the temple over several years.

The ED is now probing how the alleged proceeds of crime were generated and laundered . Officials said preliminary findings point to manipulation of tenders, relaxation of quality norms and collusion between suppliers and some officials , which allowed ineligible dairies to secure contracts. The agency suspects that bribe payments were routed through hawala channels and informal cash transactions , with funds allegedly layered through shell firms, benami accounts and false invoicing to conceal their origin. The ED is examining bank records, financial statements, tender documents and inter-linked transactions to establish the money trail and identify beneficiaries.

The laundering probe follows the SIT’s conclusion that procurement irregularities may have preceded the previous YSR Congress Party (YSRCP) government , pointing to systemic lapses in oversight rather than isolated violations. While the SIT found no evidence of animal fat in the laddus, it confirmed the use of synthetic and industrial substitutes instead of pure ghee. The issue became politically charged in September 2024 after Andhra Pradesh Chief Minister N Chandrababu Naidu alleged adulteration in the sacred offering during the previous regime, triggering a sharp political confrontation, with the YSRCP denying wrongdoing and terming the probe politically motivated.

With the ED’s entry , the case has now moved beyond adulteration to alleged economic offences , with parallel proceedings underway into criminal conspiracy, cheating, procurement fraud and laundering of illicit funds. Officials said further action, including summons, searches and possible attachment of assets , may follow as investigators seek to quantify the exact proceeds of crime and fix accountability in one of the largest alleged procurement scandals involving a major religious institution.