Discover the shocking Rs.100 crore Donkey Milk scam that duped several people across India. Learn how this massive fraud unfolded and its impact nationwide.
Donkey Milk Scam That Shocked India
In an age of rising cybercrimes and frauds, an unusual Rs.100 crore Donkey Milk scam has surfaced, leaving several people across India in financial ruin. Farmers and educated individuals from states like Telangana, Andhra Pradesh, Tamil Nadu, and Maharashtra were lured into investing in donkey farms with promises of high returns, only to find themselves victims of a well-orchestrated scam.
The Birth of the Scam
The scam originated in 2022 with the establishment of “The Donkey Palace,” an organization in Mukkudal, Tirunelveli, Tamil Nadu. Launched by the district collector, the venture appeared credible, attracting widespread attention. Led by the organization’s owner, Babu Ulaganadam, the scheme marketed donkey farming as a lucrative business. Potential investors were promised Rs.1,600 per litre of donkey milk, with the cost of donkeys ranging from Rs.50,000 to Rs.1 lakh, depending on their milk production capacity.
Adding to the scheme’s legitimacy, training sessions were conducted by a veterinarian, Ramesh Kumar, from Gujarat. Victims paid Rs.50,000 for these sessions, which covered donkey rearing, hygienic milk production, and health management. Following this, investors were encouraged to join a franchise by investing Rs.5.50 lakh.
The Trap Tightens
The scam gained momentum as the perpetrators initially delivered on their promises. Milk was procured, and payments were made for three months, building trust among investors. Victims like Sai Babu, who invested Rs.56 lakh with two friends, believed in the business’s potential.
However, the payments soon stopped. Victims who questioned the owners were met with threats and intimidation. According to Sai Babu, “Babu Ulaganadam used his political influence in Tamil Nadu to silence those who demanded their money back.”
The Fallout
By January 2023, the fraud became evident. The scammers vanished, leaving hundreds of victims across states. Many, like software engineer Ravindra, realized they had been duped when payments ceased and the milk procurement stopped.
Victims are now urging state governments to register a common FIR and launch a thorough investigation to bring the culprits to justice.
Lessons Learned
This Rs.100 crore Donkey Milk scam highlights the importance of due diligence when investing. Fraudsters often exploit people’s trust by creating a facade of legitimacy. Prospective investors must verify business credentials and seek professional advice to avoid falling prey to such schemes.
The scam is a grim reminder that financial frauds can occur in even the most unexpected forms, and vigilance is crucial to prevent becoming a victim.
Calls for Justice
Victims from multiple states have now called for a unified investigation. They are urging the State governments to register a common FIR and ensure justice. The sheer magnitude of this fraud — spanning states and affecting a diverse group of people — underscores the need for a swift and coordinated response.
The Collapse of Trust
By January 2023, cracks in the operation became evident. Payments stopped entirely, and the scammers began to intimidate and threaten victims who demanded their money back. Ravindra, one of the victims, recounted how WhatsApp group messages from Babu often included threats of severe consequences for pursuing their funds.
Sai Babu, another investor, highlighted the scam’s scale and political connections, which he claims were used to suppress dissent and delay justice. The realization of the scam left hundreds in financial ruin, with many losing their life savings.
A Legitimate Start
The Donkey Milk business initially appeared genuine. “The Donkey Palace,” an organization based in Mukkudal in Tirunelveli district, Tamil Nadu, was launched in 2022 with much fanfare by the district collector. This official endorsement gave the business an air of legitimacy, enticing investors from across Telangana, Andhra Pradesh, Tamil Nadu, and Maharashtra.
The business model revolved around the high-value proposition of donkey milk, marketed as a rare and expensive commodity priced at Rs.1,600 per litre. Investors were further encouraged to purchase donkeys, costing between Rs.50,000 and Rs.1 lakh each, depending on the animal’s milk yield.
The Donkey Milk scam has left an indelible mark across India, duping several people and siphoning off Rs.100 crore. As investigations continue, the victims hope for justice and a resolution to this audacious fraud.
