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Tirumala laddu scam: Blacklisted dairy firm caught using proxy suppliers

Bhole Baba Organic Dairy Pvt Ltd, banned in 2022 for poor manufacturing practices, used Vaishnavi Dairy and AR Dairy to get contracts and deliver low-quality ghee.

February 11, 2025 / 17:33 IST
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A remand report from the Special Investigation Team (SIT) has revealed a major scandal in the making of Tirupati laddus. It shows that a banned dairy company kept supplying bad ghee to the Tirumala Tirupati Devasthanam (TTD) through other firms. The Central Bureau of Investigation (CBI) led the investigation, which found a fraudulent supply chain. Bhole Baba Organic Dairy Pvt Ltd, banned in 2022 for poor manufacturing practices, used Vaishnavi Dairy and AR Dairy to get contracts and deliver low-quality ghee.

Bhole Baba Dairy has supplied ghee to the TTD for Rs 291 per kg since 2019. In 2022, an inspection found that their manufacturing processes were unsatisfactory, which led to the company being barred from future tenders. Instead of leaving the market, the dairy allegedly used proxies to return.

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Vaishnavi Dairy won a tender in 2020, and AR Dairy obtained another contract in March 2024 using forged documents. The SIT's report to a local court shows that Bhole Baba Dairy helped its proxies secure these deals by allegedly faking food safety certifications to meet the tender requirements.

AR Dairy was required to supply Agmark-certified ghee under the contract. However, the report claims they didn’t produce the ghee themselves; they sourced it from Vaishnavi Dairy, which obtained it from the blacklisted Bhole Baba Dairy. This violated the contract terms, and the supplied ghee was allegedly adulterated.