₹19 crore adulterated paneer-butter exported abroad from MP:₹2 crore business turns into ₹600 crore empire; owner in jail

A business that began in 2013 with a capital of ₹2 crore grew to nearly ₹600 crore in just 13 years. Investigating agencies allege that this rapid expansion was built on a network of adulteration, fraud and deception. At the centre of the case is Kishan Modi, owner of Jayshree Gayatri Foods Limited, who has been in jail for the past three months. The Madhya Pradesh High Court recently rejected Modi’s bail plea after examining evidence collected by the Enforcement Directorate (ED). The agency launched its investigation in January 2025 after receiving a complaint that dairy products worth about ₹19 crore, allegedly made using palm oil and chemicals, were exported overseas. The case first came to light after a social activist raised concerns about the quality of ghee used in litti chokha. The investigation has since expanded to examine how an alleged network of adulterated dairy products operated for years and eventually came under the ED’s scanner. Factory renamed, but ownership remains the same The Bhaskar team visited the company’s plant in Bilkisganj, around 40 km from Bhopal in Sehore district. The factory, once known as Jayshree Gayatri Foods, now operates under the name Health Bridge Agro Private Limited. However, government records still list Kishan Modi and his wife Payal Modi as the company’s directors. Smoke was seen rising from the factory’s boiler during the visit. Employees said the boiler is switched on periodically for machine maintenance. During the visit, Kishan Modi’s father Rajendra Modi arrived at the plant but declined to speak to the media. How the investigation unfolded According to investigators, several developments gradually brought the alleged fraud to light. 1. FIR against CEO and employees In 2023, a fraud complaint was filed at Habibganj police station against the company’s then CEO Sunil Tripathi and other employees. Police arrested the accused, and the investigation later widened to examine other aspects of the company’s operations. 2. EOW probe and High Court ruling Whistleblower Bhagwan Singh later submitted documents to the Economic Offences Wing (EOW). After its inquiry, the EOW registered an FIR against Kishan Modi, Rajendra Modi and Payal Modi. The Madhya Pradesh High Court later quashed the FIR on technical grounds. 3. ED registers money laundering case Despite the EOW FIR being quashed, the ED proceeded with a money laundering investigation based on the Habibganj police FIR and its preliminary findings. During the probe, investigators allegedly found fake laboratory reports and irregularities in export-related documents. The ED claims that ₹19.69 crore is linked to proceeds of crime. Kishan Modi, who has been in judicial custody since March 13, was denied bail in this case. Whistleblower links probe to suspicious ghee Bhagwan Singh, who filed the complaint, said he first became suspicious two to three years ago while eating litti chokha near Bhopal’s 11 Number Stop. “The taste seemed unusual. When I asked the vendor, he showed me ghee manufactured by Jayshree Gayatri Foods. That prompted me to investigate further,” he said. According to Singh, local farmers living near the factory had complained about waste discharged from the plant. He alleged that untreated chemical waste was dumped in nearby fields, affecting groundwater quality in surrounding villages. He said documents obtained through the RTI Act indicated that palm oil and chemicals were being used in the manufacturing process. Key claims in witness statements Several significant claims have emerged from statements recorded during the ED investigation and included in the agency’s chargesheet. Former CEO Sunil Tripathi allegedly told investigators that the factory’s operations were carried out with the knowledge of senior management. He also reportedly admitted that laboratory reports were prepared with the help of employees and submitted for export approvals. Accountant Akhilesh Rathore allegedly stated that the factory purchased 5 to 6 lakh kilograms of palm oil, which was used in the production of dairy products. What happens next? Kishan Modi remains in judicial custody. The EOW has filed a Special Leave Petition (SLP) in the Supreme Court challenging the High Court’s decision to quash its FIR. Complainant Bhagwan Singh has also approached the apex court against the same order. With multiple petitions pending, the next phase of the case will now be decided by the Supreme Court.