Tirumala Laddu Scam: Blacklisted Dairy Firm Used Proxy Suppliers to Evade Ban

The SIT report submitted to the court states that Bhole Baba Dairy actively assisted its proxies in securing these deals by allegedly falsifying food safety certifications.

  • Dinesh Akula | Publish Date - February 11, 2025 / 05:14 PM IST

Tirupati (Andhra Pradesh): A major scam involving the adulteration of the sacred Tirupati laddus has come to light, exposing a fraudulent ghee supply chain that continued despite an official ban. A remand report filed by the Special Investigation Team (SIT) has revealed that Bhole Baba Organic Dairy Pvt Ltd, blacklisted by the Tirumala Tirupati Devasthanam (TTD) in 2022 for failing quality standards, secretly supplied ghee to the temple through proxy companies. The Central Bureau of Investigation (CBI) )-led probe uncovered how Vaishnavi Dairy and AR Dairy were used as fronts to secure lucrative contracts and supply substandard ghee for the temple’s famous prasadam.

Bhole Baba Dairy has been supplying ghee to the TTD since 2019 at ₹291 per kg. However, after an inspection deemed its manufacturing processes unsatisfactory, it was barred from participating in future tenders. Instead of shutting down operations, the company allegedly orchestrated a backdoor entry into the supply chain. Vaishnavi Dairy secured a tender in 2020, while AR Dairy, using forged documents, won another contract in March 2024. Investigators discovered that AR Dairy did not produce the ghee as required but sourced it from Vaishnavi Dairy, which in turn procured it from the blacklisted Bhole Baba Dairy.

The SIT report submitted to the court states that Bhole Baba Dairy actively assisted its proxies in securing these deals by allegedly falsifying food safety certifications. The contract terms required AR Dairy to supply Agmark-certified ghee, yet the SIT found evidence that adulterated ghee was being passed off as meeting the required standards.

The scheme unravelled when authorities identified fraudulent practices in the tender process. Four individuals were arrested: former Bhole Baba Dairy directors Vipin Jain and Pomil Jain, Vaishnavi Dairy CEO Apoorva Chawda, and AR Dairy Managing Director Raju Rajasekharan. Officials revealed that Vaishnavi Dairy had unlawfully acquired tenders under AR Dairy’s name and manipulated the records to qualify. Investigators also discovered that Vaishnavi Dairy falsely claimed it procured ghee from Bhole Baba Dairy, even though the latter could not meet TTD’s demands.

The case has escalated into a political flashpoint in Andhra Pradesh. The investigation was initiated following allegations that the Tirupati laddus contained traces of animal fat. On October 4, the Supreme Court took up petitions filed by BJP leader Subramanian Swamy and YSR Congress Party (YSRCP) Rajya Sabha MP YV Subba Reddy, directing the SIT to probe the claims under the supervision of the CBI director.

Chief Minister Chandrababu Naidu has accused the previous YSRCP government, led by Jagan Mohan Reddy, of severe negligence in temple management. Naidu claimed that the previous administration compromised the sanctity of Sri Venkateswara Temple by permitting the use of substandard ingredients and possibly animal fat in the sacred laddus. His remarks, made during an NDA legislative party meeting, triggered widespread outrage among devotees and political opponents.

The controversy has led to a massive public outcry, with devotees demanding strict accountability from temple authorities. A five-member probe team, consisting of two CBI officers, two officials from the Andhra Pradesh government, and a representative from the Food Safety and Standards Authority of India (FSSAI), has been formed to investigate the extent of the scandal.

As religious sentiments run high, the TTD faces mounting pressure to restore public trust and implement stricter procurement policies. The SIT is also investigating whether temple officials were complicit in allowing a blacklisted supplier to continue operations through proxies. With the investigation still unfolding, the scandal can potentially reshape the political and administrative landscape surrounding one of India’s most revered temples.

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