The single-member committee probing the loopholes in procurement of ghee for making Tirumala laddoo prasadam between 2019 and 2024 has former Tirumala Tirupati Devasthanams (TTD) executive A V Dharma Reddy as the key official, people familiar with the matter said on Saturday.
The committee consists of retired Andhra Pradesh Chief Secretary Dinesh Kumar. It was constituted by Chief Minister N Chandrababu Naidu on February 20 and submitted its report to the state government on April 30. The report was published on Saturday.
The committee identified Dharma Reddy as the main culprit responsible for significant lapses, including relaxing bidding standards, failing to act against suppliers in the case of confirmed fraud, and allowing continued dealings with questionable suppliers.
It also detained former executive officer Anil Kumar Singhal for allegedly agreeing to relax tender conditions without due diligence. Former MLA Chevireddy Bhaskar Reddy, former TTD chief Bhumana Karunakar Reddy (both special invitees), M Ramulu and chief accounts officer O Balaji were among those identified as responsible for key decisions that allegedly weakened safeguards against manipulation.
“Adulterated ghee was allowed into the system despite clear scientific evidence,” the report said.
It cited an August 3, 2022 report by the Central Food Technology Research Institute (CFTRI) that detected the presence of ß-sitosterol, a sign of adulteration of vegetable oils, in all samples tested. “Despite this, no action was taken on the report, suppliers were not blacklisted, and purchases continued without oversight,” the committee said.
The report noted that the procurement framework itself encourages fraud. Excessive tendencies to select the lowest bidder led to acceptance of abnormally low bids which excluded the supply of pure ghee. In multiple instances, post-auction price reductions were allowed through informal communication, which directly violates bidding standards.
“Even after ß-Sitosterol testing became mandatory from 1 July 2022, TTD failed to implement it in its procurement process,” the report said.
As a result of these lapses, more than 7 million kilograms of ghee were purchased without mandatory testing. “The consignments of ghee were accepted and used to prepare ladoos even before laboratory test results were received. This means thousands of devotees consumed adulterated ghee,” the report said.
It alleged that an organized fraud network – involving a major supplier manufacturing adulterated ghee, and supply routes run by middlemen despite their disqualifications – existed, and recommended strict disciplinary action against all officials deemed responsible. In addition, it calls for all errant suppliers to be blacklisted and punished.
“There should be a comprehensive overhaul of the procurement system, including eliminating over-reliance on L-1 bids and introducing stronger quality-based evaluation mechanisms. There is an urgent need to establish a robust real-time internal testing infrastructure to detect fraud before shipments are accepted,” the report said.
It also recommended the strict application of food safety standards, eliminating conflicts of interest in committee structures, and introducing independent oversight mechanisms to ensure transparency and accountability.
“This was not just a lapse, it was a systemic breakdown that enabled adulterated ghee to enter and be used in one of our most sacred institutions, severely impacting public confidence and widespread religious sentiment.”
