The Core Allegations Against AR Dairy
At the heart of the controversy is the alleged adulteration of ghee and a series of deceptive practices to secure a supply contract with the Tirumala Tirupati Devasthanams (TTD). The issues came to light after TTD rejected several ghee consignments due to quality concerns, prompting a wider investigation involving regulatory bodies and law enforcement.
Ghee Adulteration Claims
Multiple investigations found that the ghee supplied by AR Dairy for the sacred Tirupati laddus was not pure milk fat. Tests confirmed the presence of foreign fats, specifically plant-based compounds. This contradicted the tender specifications and religious requirements.
Falsification of Procurement Data
A CBI-led Special Investigation Team (SIT) presented evidence that AR Dairy significantly inflated its milk procurement figures. The tender required a minimum procurement of 2 lakh litres per day, but AR Dairy claimed 2.52 lakh litres daily. However, seized documents showed the actual average procurement was only 1.45 lakh litres per day. This falsification allowed the company to win a contract it was not equipped to fulfill.
The Subcontracting Network
The investigation uncovered a complex subcontracting network where AR Dairy procured ghee from other companies. This raised concerns about the supply chain's integrity.
Regulatory and Legal Action
A series of actions were taken by regulatory bodies and the judiciary in response to these findings, including police complaints, show-cause notices, arrests, and license suspensions. The FSSAI ultimately re-suspended AR Dairy's license for severe violations. A detailed timeline of these actions can be found on {Link: WhatPackaging? https://www.whatpackaging.co.in/news/fssai-suspends-license-of-ar-dairy-food-58991}.
Comparison of Allegations vs. AR Dairy's Claims
| Aspect | Allegations from Investigations (FSSAI/CBI) | AR Dairy's Official Statements |
|---|---|---|
| Ghee Quality | Product contained foreign fats, including plant-based compounds like sitosterol and possibly animal fats, indicating adulteration. | Firmly denied all adulteration claims, asserting their ghee met all safety standards and the sample under scrutiny was not theirs. |
| Procurement Data | Inflated daily milk procurement data to secure the TTD contract (claimed 2.52 lakh L, actual was 1.45 lakh L). | Claimed innocence and pointed to standard tender processes, suggesting the discrepancy was not fraudulent. |
| Supply Chain | Sourced ghee from other companies (Vyshnavi, Bhole Baba) despite tender requirements, obscuring traceability and quality control. | Confirmed subcontracting but maintained it was within legal parameters, claiming all products were properly vetted. |
| Regulatory Compliance | Supplied false information to FSSAI and TTD, violating multiple provisions of the Food Safety and Standards (FSS) Act, 2006. | Stated full cooperation with regulatory bodies and denied any intentional provision of false information. |
| Motivation for Issue | Driven by a dishonest intent to violate tender conditions for wrongful gain. | Alleged political motivation behind the controversy, with denials of any wrongdoing. |
Broader Implications and Aftermath
The AR Dairy scandal raises questions about supply chain integrity, regulatory oversight, and the ethics of food producers. It highlighted the vulnerability of large tenders to dishonest practices and potential public health risks from adulterated products. The political dimension further complicated the issue. For consumers, the case emphasizes buying from reputable sources. Regulatory bodies face increased pressure for consistent enforcement of food safety standards.
Conclusion
The issue of AR dairy involves alleged food adulteration and corporate misconduct, leading to regulatory and legal consequences. Allegations of supplying foreign fat-adulterated ghee for a religious offering and falsifying data have brought scrutiny. While AR Dairy maintains its innocence, investigations by FSSAI and CBI indicate serious violations. Ongoing legal proceedings and license suspension highlight the importance of transparency and quality control in the food industry. You can read more about the ongoing investigation and the regulatory actions taken by FSSAI on {Link: Mint's official website https://www.livemint.com/news/fssai-suspends-ar-dairy-licence-ghee-adulteration-false-information-11755422633259.html}.
