Bhopal, March 18 (IANS) The Enforcement Directorate (ED), Bhopal Zonal Office, has provisionally attached 11 immovable properties worth Rs 20.59 crore belonging to M/s Jayshri Gayatri Food Products Pvt Ltd and its Managing Director, Kishan Modi, under the Prevention of Money Laundering Act (PMLA), 2002.

The attachment order was issued following an ongoing money laundering probe linked to the manufacture, supply and export of adulterated dairy products.

The company, which markets its products under the brand name ‘Milk Magic’, is accused of producing adulterated dairy items by substituting milk fat with palm oil and other harmful chemicals.

These products were supplied in the domestic market and exported to various countries. To obtain export clearances from the Export Inspection Agency (EIA) in Indore, the firm allegedly submitted forged laboratory test reports from reputed laboratories.

Verification with the concerned laboratories later confirmed that many such reports were fabricated and had never been issued.

Investigations revealed that, relying on these forged documents, Jayshri Gayatri Food Products Pvt Ltd exported the adulterated products and received export proceeds amounting to approximately Rs 20.59 crore in its bank accounts with Axis Bank and HDFC Bank.

The ED has identified these proceeds as ‘proceeds of crime’ under PMLA provisions.

The case stems from two FIRs -- one registered on August 29, 2023, at Habibganj Police Station, Bhopal, and another on July 22, 2024, by the Economic Offences Wing (EOW), Bhopal -- against the company’s directors and officials under various sections of the Indian Penal Code.

Earlier, the ED arrested Kishan Modi on March 13, 2026, under Section 19(1) of the PMLA. He was produced before the Special PMLA Court in Bhopal, which granted the agency custody until March 18, 2026.

Subsequently, the court remanded him to judicial custody on March 18.

The probe, which began on the basis of the FIRs, has uncovered a systematic fraud involving large-scale adulteration, document forgery and laundering of illicit export earnings.

The attached properties include 11 immovable assets linked to the company and its Managing Director.

Further investigation is in progress, with the ED likely to pursue additional action, including more arrests and attachments, to dismantle the alleged racket that endangered public health through substandard and harmful dairy products while generating substantial illicit funds.

--IANS

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