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Home»Fraud Alert»​Vigilance Arrests Two Traders in Rs 2.5 Crore Sabarimala Ghee Diversion Scam
Fraud Alert

​Vigilance Arrests Two Traders in Rs 2.5 Crore Sabarimala Ghee Diversion Scam

UserBy UserNovember 15, 2026No Comments3 Mins Read
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Thiruvananthapuram: A special team of the Kerala Vigilance and Anti-Corruption Bureau (VACB) has arrested two wholesale traders from Tamil Nadu for allegedly purchasing around 11,000 litres of ghee meant for the Sabarimala temple. The accused, identified as Venkateswaran and Kumaran from Oddanchatram, allegedly bought the official consignment from a transport contractor for about Rs 50 lakh in cash to avoid leaving any transaction trail.

​The case pertains to the 2025 Sabarimala pilgrimage season, during which the Kerala Cooperative Milk Marketing Federation (KCMMF), which sells products under the Milma brand, held the contract to supply ghee to the hill shrine. Contractor S.S. Binu, appointed by the Travancore Devaswom Board (TDB) to transport the stock from the dairy to Sabarimala, allegedly diverted the 11,000 litres and sold it to the two traders in Tamil Nadu instead of delivering it to the temple.

​Cash Payment Used to Conceal Illegal Sale

​According to vigilance officials, both traders were aware that the stock belonged to an official consignment designated for the temple and was being sold in violation of contract norms. Despite knowing this, they went ahead with the purchase and paid approximately Rs 50 lakh in cash so that no formal financial record of the transaction would remain. Investigators are now probing whether other individuals were involved in transporting and selling the diverted stock across Tamil Nadu.

​Contractor Binu was arrested last month in connection with the scam. He is accused of intercepting the high-quality ghee meant for the shrine en route and replacing it with a cheaper substitute. The vigilance agency estimates that this alleged diversion and substitution caused a financial loss of nearly Rs 2.5 crore to the Travancore Devaswom Board.

​Temple Store Records Manipulated to Cover Up Shortage

​Further investigation has revealed serious irregularities in the temple’s supply registers. Officials found that the Sabarimala store records reflected the receipt of the full stipulated quantity of ghee, even though the substitute product sent in its place was not delivered in full. The agency alleges that false entries were made in the official registers to conceal the diversion of the actual consignment.

​A TDB employee, Jayalal, who served as a supervisor at the Sabarimala store during the 2025 pilgrimage season, has already been arrested in the case. He is accused of colluding with contractor Binu to falsify register entries to show complete delivery. Another TDB employee, who was also posted as a store supervisor and allegedly assisted Binu in the irregularities, remains absconding.

​Probe Initiated Following High Court Directives

​The vigilance inquiry was launched after allegations regarding irregularities in ghee procurement and supply reached the Kerala High Court. The Sabarimala Special Commissioner had informed the court that prescribed tender rules were bypassed during the procurement process and raised concerns over the quality of ghee supplied by KCMMF, prompting the High Court to order a VACB investigation.

​During earlier hearings, vigilance officers informed the court that TDB officials had abandoned the e-tender process midway. It was alleged that KCMMF was given preference based on the recommendation of then administrative officer Murari Babu, on the grounds that the federation’s ghee was of superior quality and would be required in smaller quantities. A case had also been registered earlier against three persons, including former TDB president P.S. Prashanth. Following the arrest of the two traders, the agency is examining the entire chain of procurement, transport, storage, and accounting to identify everyone involved in the cash payments and record tampering.

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