A routine order discrepancy leads investigators to a massive fake ghee racket spanning Tamil Nadu and Karnataka. Representational image, Midori, CC BY 3.0 , via Wikimedia Commons
India

How a Distributor’s Suspicious Order Cut Led Police to a ₹1.27-Crore Fake Ghee Racket

An interstate network producing counterfeit Nandini ghee is exposed after Bengaluru police seize over 8,000 litres of adulterated product.

Vanshika Kalra

Bengaluru, November 18, 2025: In a significant crackdown on food adulteration, Bengaluru police have busted an interstate racket that was producing and distributing fake ghee under the trusted brand name 'Nandini'. The operation, which took place in Tamil Nadu and distributed across Karnataka, has raised serious concerns about food safety and consumer trust in the region.

The Nandini brand, owned by the Karnataka Co-operative Milk Producer's Federation (KMF), is one of South India's most trusted dairy brands.

The Breakthrough

The scam unraveled when Karnataka Milk Federation (KMF) officials noticed unusual ordering patterns from Mahendra, an authorized distributor who had suddenly reduced his regular ghee orders from 100 liters to just 50 liters. This suspicious change triggered an internal investigation that led to the exposure of a sophisticated adulteration network.

A joint team from the Central Crime Branch Special Investigation Squad and the KMF Vigilance Wing tracked the operation for several weeks before conducting raids on Friday, November 14 at multiple locations including godowns, shops, and goods vehicles belonging to Krishna Enterprises in Chamarajpet, owned by Mahendra, and his family.

He allegedly resorted to adulteration to raise money for his daughter’s wedding, sources said.

How the Racket was Operated

The network prepared adulterated ghee in Tamil Nadu, capitalizing on the high demand for Nandini ghee in Karnataka. The operation was remarkably systematic:

The fake ghee was packaged in counterfeit Nandini sachets and plastic bottles that closely resembled original packaging, then supplied to accused individuals in Bengaluru who held official KMF distribution licenses.

According to sources, the main accused allegedly mixed palm oil and other fats with genuine Nandini ghee, converting one liter of authentic ghee into five liters of adulterated product. This diluted product was then distributed across the city at market prices, allowing the group to pocket enormous profits while deceiving unsuspecting consumers.

The Arrests and Seizures

Four individuals have been arrested in connection with the case:

  • Mahendra: A licensed KMF distributor and the primary accused

  • Deepak: Mahendra's son

  • Muniraju: The supplier who sourced adulterated ghee from Tamil Nadu

  • Abhi Arasu: Allegedly responsible for transporting the fake product to Bengaluru

Police seized 8,136 liters of adulterated ghee, large quantities of coconut and palm oil, Rs 1.19 lakh in cash, four goods vehicles that included Bolero valued at Rs 60 lakh alleged to be used for transport, and machinery used to produce and pack the fake ghee.  Poor grade palm oil and coconut oil were also recovered during the raids. The total value of seized items is estimated at Rs 1.27 crore.

How to Identify Pure Ghee: Consumer Guidelines

According to the Ministry of Consumer Affairs, Food and Public Distribution, consumers can identify genuine ghee through several key characteristics:

Visual Appearance:

  • When melted, pure ghee should be clear, transparent and completely free from sediment or foreign coloring matter

  • Quality ghee samples display well-developed granules dispersed fairly, thickly and uniformly throughout the entire mass

  • The color appears deeper when melted compared to solid form

Color Indicators depending upon the Source:

  • Cow Ghee: Bright yellow color due to carotenoid pigments (beta carotene) - this is a desirable quality in regions where cow ghee is preferred

  • Buffalo Ghee: White in color, sometimes with a greenish tinge depending on the region and feeding schedule

  • Mixed Milk Ghee: Straw-yellow color

Health Implications of Adulterated Ghee

The discovery of this racket highlights a disturbing trend in food adulteration that poses serious health risks to consumers. Ghee, a staple in Indian kitchens and considered nutritionally beneficial in Ayurveda, becomes potentially harmful when adulterated with cheaper oils and fats.

Adulterated ghee commonly contains:

  • Vanaspati (hydrogenated vegetable oil)

  • Palm oil

  • Cottonseed oil

  • Animal fats

  • Synthetic materials

Consumption of such contaminated products has been linked to various health issues, including cardiovascular diseases, digestive disorders, and in severe cases, even cancer. The presence of trans fats in adulterated oils is particularly concerning for heart health.

Historical precedents underscore the gravity of oil adulteration.

The Spanish toxic oil syndrome in the 1980s resulted in over 600 deaths when non-edible rapeseed oil was marketed as edible olive oil.

In 1998, pandemic dropsy in Delhi was caused by edible oil contaminated with Argemone mexicana (Mexican Poppy) oil. 1

Investigation Continues

A case has been registered with the CCB Special Investigation Division, and police say the investigation is continuing with more arrests likely as they probe the full scale of the operation. 

Samples are being sent to Forensic Science Laboratory (FSL) for testing to determine the exact composition of the adulterated ghee and whether animal fats were mixed in.

Reference:

1. Begum A, Jain BP. Adulteration in edible oil (mustard oil) and ghee; detection and their effects on human health. Int J Biochem Mol Biol. 2024;15(6):141-148. Published 2024 Dec 15. doi:10.62347/VVCI2092

(Rh/VK)

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