The team also intercepted a vehicle transporting counterfeit ghee, that was packed in fake Nandini branded sachets and bottles.
Published Nov 17, 2025 | 4:51 PM ⚊ Updated Nov 17, 2025 | 4:51 PM
Nandini Ghee. Credit: x.com/kmfnandinimilk
Synopsis: Bengaluru police busted a massive fake Nandini ghee racket, seizing 8,136 litres of adulterated ghee worth Rs 1.27 crore made from palm and coconut oil. Four have been arrested, including a KMF distributor. Counterfeit ghee produced in Tamil Nadu was sold across shops in Bengaluru. This is the second major blow to Karnataka’s iconic brands after 2024 Mysore Sandal Soap counterfeit raid.
The Bengaluru police on Saturday, 15 November, busted a massive racket on Saturday that was selling adulterated ghee under the renowned and trusted brand of ‘Nandini’ owned by the Karnataka Milk Federation (KMF).
This is the second time in the last two years that fake rackets selling products under Karnataka’s flagship brands have been busted. In January 2024, a counterfeit Mysore Sandal Soap production facility in Hyderabad was raided after operating for a decade.
Mysore Sandal Soap and Nandini are widely seen as Karnataka’s flagship state-run brands — one built on the state’s sandalwood legacy, the other on its dairy cooperative network.
Over 8,136 litres of fake ghee worth Rs 1.27 crore, along with four vehicles used for distribution, machinery, Rs 1.19 lakh in cash, and large quantities of coconut and palm oil used for adulteration, were seized, according to a statement by the office of Bengaluru police commissioner Seemanth Kumar Singh. Four accused, including a KMF distributor, his son and two others, have been arrested in the case so far.
The network allegedly produced adulterated ghee in Tamil Nadu and filled it into fake Nandini brand sachets and plastic bottles, and sold them across Bengaluru. Further probe is underway.
The scam came to the fore after KMF officials noticed unusual supply patterns. Mahendra, the KMF distributor who was arrested, used to regularly placed large ghee orders. However, he began reducing the quantity of the ghee – from around 100 litres to 50 litres over the last few months, which raised suspicion.
Exploiting the high demand for Nandini ghee in the state, the accused prepared spurious ghee using coconut and palm oil in Tamil Nadu and supplied to the KMF distributor in Bengaluru, who held official KMF licences. He and his family, who have also been accused in the case, then allegedly distributed this counterfeit product to various wholesale, retail shops and Nandini parlours across the city at full market price.
After the Central Crime Branch (CCB) Special Investigation Squad and the KMF Vigilance Wing gathered more intelligence, a joint team conducted raids on Friday at the godowns, shops, and vehicles of Krishna Enterprises in Nanjamba Agrahara, Chamarajpet, owned by one of the accused and his family members.
The team also intercepted a vehicle transporting adulterated ghee from Tamil Nadu, that was packed in fake Nandini branded sachets and bottles, and detained the driver.
Additionally, the team recovered five mobile phones, four goods vehicles worth Rs 60 lakh, along with fake Nandini branded sachets and bottles filled with 8,136 litre of adulterated ghee, and cans filled with coconut and palm oil used for adulteration.
In January 2024, the then Minister for Large and Medium Industries and Infrastructure Development M B Patil, received a tip-off via an anonymous phone call about fake Mysore Sandal Soap being supplied in the Hyderabad market.
Upon investigation, Malakpet police found goods worth an estimated Rs 2 crore, including fake products and cartons used for packaging. They also seized 20 cartons containing three-soap packs, each weighing 150 gm (totalling 1,800 pieces), as well as 47 cartons for each soap weighing 75 grams (totalling 9,400 pieces).
They further seized empty packing boxes for 150-gram Mysore Sandal Soap (400 pieces) and empty packing boxes for 75-gram Mysore Sandal Soap (400 pieces).
Due to the high demand for Mysore Sandal Soap during the Makara Sankranti festival, orders for around Rs 25 lakh had reportedly been placed with the fake unit. On the pretext of transporting the soaps in a vehicle, the area sales head visited the spot himself and confirmed the existence of the fake Mysore Sandal Soap manufacturing unit.
Two city-based businessmen — Rakesh Jain and Mahaveer Jain, both active BJP members — were arrested and charged with running the fake manufacturing unit.
According to a report by the Indian Express, the Karnataka Soaps and Detergents Limited (KSDL), that manufactures the Mysore Sandal Soap, incurred a loss of Rs 500-600 crore due to the fake manufacturers.
“We have found that their annual turnover was about Rs 60 crore and they have been doing it for nearly a decade,” a KSDL source told Indian Express.
(Edited by Amit Vasudev)
