Crave Creamery Suffered a ₹5.3m Milk-Fat Fraud Loss
Crave Creamery LLP, a dairy processor based in Bhojpara village in Gujarat’s Bhavnagar district, reported losses exceeding 53 lakh rupees after a milk-procurement fraud scheme. Six people were arrested following criminal complaints registered with police in Bharatnagar, Velavadar-Bhal and Talaja.
Investigators said company employees had worked with local milk traders to alter incoming-quality records and produce false laboratory documents. The suspects were charged under several provisions of India’s Bharatiya Nyaya Sanhita. Preliminary findings alleged that fat readings were overstated over an extended period, leading payments to be redirected to private trading accounts.
Milk prices in the region are calculated using measurements of butterfat and solids-not-fat. The investigation indicated that diluted or lower-quality consignments were recorded as milk with higher fat content, qualifying them for larger procurement payments.
The disputed test results also affected production records at the plant. Reported input levels did not match the quantities of butter, ghee and other dairy fats that could be produced from the milk actually received, creating gaps between recorded raw-material composition and finished-product output.
The case concerns milk collection routes that rely on local intake documentation before payment is made. Manual records and intermediary testing points formed part of the procurement process described in the investigation.
The source reported that the 53-lakh-rupee shortfall affected the processor’s working capital and created discrepancies between purchased butterfat and recorded finished-goods output. It also said that the company faced additional quality-control and accounting issues as a result of the alleged manipulation.
Authorities’ action followed formal complaints, while the allegations remain subject to the legal process. The source did not report a court verdict or provide further details about the identities of the six arrested people.
