A one-man commission constituted by the Andhra Pradesh government on Saturday revealed that the TTD procured over 70 lakh kg of ghee to be used in preparing the famous Tirupati laddus, without the mandatory quality checks.
The report submitted by the commission claimed that this systemic failure allowed suppliers to provide adulterated ghee, as officials allegedly ignored safety tests and suppressed lab reports confirming the presence of vegetable fats.
Chief Minister N Chandrababu Naidu appointed a one-man commission headed by retired IAS officer Dinesh Kumar to probe the supply of alleged adulterated ghee to Tirumala Tirupati Devasthanams (TTD), after the Supreme Court-appointed SIT submitted its report.
FSSAI norms bypassed, safeguards diluted
“TTD officials initially planned to incorporate mandatory FSSAI β-Sitosterol testing (effective July 1, 2022) but reversed the decision, granting suppliers an exemption, leading to procurement of 70 lakh plus kgs of ghee without the legally required quality check,” said Kumar in his report.
The report identified systemic administrative failures as the root cause, specifically in the enforcement of tender rules and noted that critical safeguards meant to ensure quality were gradually eroded.
Critical lab reports confirming adulteration were allegedly suppressed, while procurement decisions were taken without full oversight, undermining due process, it added.
Tender norms relaxed, oversight weakened
The panel also found that procurement committee members allegedly relaxed tender norms without the full committee or convener, allowed post-bid price reductions after reverse auctions and accepted abnormally low bids without scrutiny to procure ghee.
It highlighted that eligibility norms introduced in August 2019 were allegedly diluted within months without assessment, allowing non-compliant firms such as Bhole Baba Organic Dairy Milk Pvt Ltd to enter supply chain despite lacking verifiable production capacity.
Adulteration confirmed, action not taken
According to the report, a Central Food Technological Research Institute (CFTRI) lab test on August 3, 2022, confirmed adulteration with vegetable oils through β-Sitosterol presence, yet the findings were allegedly suppressed and firms were not blacklisted under tender conditions.
Mandatory FSSAI β-Sitosterol testing norms were initially planned but later scrapped, enabling procurement of over 70 lakh kilograms of ghee without testing.
Price undercutting and supply chain irregularities
The commission noted that suppliers resorted to steep price cuts up to Rs 207 per kg ghee and alleged illegal post-auction negotiations, while contracts were awarded to ineligible firms with over-reliance on L1 (lowest bid) pricing, incentivising adulteration.
It also flagged that TTD’s laboratory lacked alleged equipment for real-time adulteration testing and that its upgrade, deemed necessary after the incident, was delayed by nearly three years.
Weak monitoring and conflict of interest
The report pointed to overlapping membership in technical evaluation and plant inspection committees, compromising independent oversight, while complaints and quality monitoring systems were allegedly largely ignored.
Investigation into specific vendors revealed that Bhole Baba Organic Dairy continued supplies even after disqualification and adverse lab reports, allegedly using synthetic additives such as Beta-Carotene, Acetic Acid Ester and artificial flavouring agents to bypass tests and routing supplies through intermediary dairies.
Vendors flagged, officials held responsible
Premier Agri Foods Pvt Ltd, one of the largest suppliers, continued receiving fresh orders despite confirmed adulteration, while being granted exemptions from FSSAI testing norms, said the one man commission report.
AR Dairy Food Pvt Ltd submitted inflated production and certification records and failed independent laboratory tests, yet remained part of the supply chain, reflecting weak enforcement, said Kumar in his report.
The commission held the TTD Board, purchase committee and senior officials and dairy experts responsible for governance failures, procedural lapses and continued procurement from non-compliant vendors.
Published on May 2, 2026