Dindigul Farm Chairman Secures Bail Amid Ghee Adulteration Probe

Image Source : Business Standard

The Madras High Court has granted bail to Raju Rajasekaran, Chairman and Managing Director of Dindigul Farm Product Ltd, following his arrest in connection with the alleged supply of adulterated ghee to the Tirumala Tirupati Devasthanams (TTD). The bail comes as the company seeks to stabilise operations and reassure stakeholders.

Background And Allegations

Rajasekaran was arrested in February 2025 by a Special Investigation Team probing the supply of substandard ghee used in sacred prasadam preparation at TTD
The arrest triggered a sharp 11.4 percent drop in Dindigul Farm’s stock price, reflecting investor anxiety over reputational and regulatory fallout
The company is accused of violating food safety norms and mislabeling product quality during July 2024 deliveries

Legal And Corporate Developments

The High Court granted bail citing procedural delays and lack of conclusive evidence in preliminary lab reports
Rajasekaran also serves as Managing Director of A R Dairy Food Pvt Ltd, which was named in the investigation
Dindigul Farm has initiated an internal audit and pledged full cooperation with authorities

Operational And Market Context

Despite the controversy, the company reported Rs 85.53 crore in FY24 revenue, up 4.8 percent yearonyear
Profit surged 69.1 percent to Rs 8.74 crore, driven by dairy ingredient exports and retail expansion
The firm continues to supply milk protein concentrates, skimmed milk powder, and dairy whitener across South India

Sources: Trade Brains, Screener.in, Chittorgarh, EnNutrica Corporate Filings.