ED arrests Madhya Pradesh food company owner for money laundering, selling adulterated dairy products

The Enforcement Directorate (ED) has arrested the owner of a Madhya Pradesh-based food company in connection with a money laundering case, and allegedly selling adulterated dairy products, the agency said on Monday (March 16, 2026). 

“ED, Bhopal Zonal Office has arrested Kishan Modi on March 13 under Section 19(1) of the Prevention of Money Laundering Act (PMLA), 2002 in connection with a money laundering investigation relating to M/s Jayshri Gayatri Food Products Pvt. Ltd. (JGFPPL) and others,” the ED said in a statement.

The arrest was made in connection with two money laundering cases lodged by the Bhopal police in August 2023, and by the Economic Offences Wing in July 2024.  

Mr. Kishan Modi was presented before a special PMLA court on March 14, and the ED had been granted custody till March 18. 

The company supplied dairy products under the brand name ‘Milk Magic’, and was involved in manufacturing adulterated dairy products by substituting milk fat with palm oil and other harmful chemicals, the agency said. 

“These products were not only supplied in domestic market but were also exported to various countries. In order to facilitate such exports, forged laboratory test reports of reputed laboratories were submitted before the Export Inspection Agency, Indore to obtain export clearance,” it said, adding that verification from the laboratories revealed that many such reports were “forged and had not been issued by them”.

The company received payments worth ₹20.59 crore for the export of adulterated products, the ED said.