ED arrests food company director in MP export fraud:Fake lab reports used to ship dairy products overseas; ₹20.59 crore earned

The Enforcement Directorate (ED) in Bhopal has arrested Kishan Modi, director of Jaishree Gayatri Food Products Private Limited, in connection with an alleged dairy export fraud. According to the agency, the company exported dairy products using fake laboratory test reports and earned foreign exchange worth ₹20.59 crore. The ED has treated this amount as “proceeds of crime” under the Prevention of Money Laundering Act (PMLA). After his arrest, Modi was produced before a special court in Bhopal, which sent him to ED remand till March 18 for further questioning. Fake reports allegedly obtained from Indore agency The ED investigation found that Jaishree Gayatri Food Products, which sells dairy items under the Milk Magic brand, exported products such as ghee, cheese and butter to foreign markets. To make the export process easier, the company allegedly obtained fake laboratory test reports from an export inspection agency in Indore. Using these reports, the products were cleared for export and sent abroad. ₹20.59 crore treated as proceeds of crime The agency said the company earned around ₹20.59 crore in foreign exchange through these exports. The ED has classified the amount as proceeds of crime under money laundering laws and is investigating the possible role of other people and institutions linked to the case. Case based on earlier FIR in Bhopal The investigation is based on an FIR registered at Habibganj police station in Bhopal on August 29, 2023, under various sections of the Indian Penal Code. Based on this FIR, the ED registered a money laundering case on July 22, 2024, and began its probe. ED had earlier conducted raids The agency had earlier carried out raids at locations linked to the company during the investigation. The case had drawn attention at that time after Modi’s wife allegedly consumed poison during the searches. The ED said the investigation is ongoing, and the role of other individuals involved in the alleged fraud is also being examined.