An undercover investigation has allegedly uncovered an organised network involved in the production and distribution of fake paneer, adulterated milk and synthetic khoya across the Delhi-NCR region.
The investigation, conducted in February 2026, reportedly traced the supply chain from makeshift manufacturing units in Mewat, Haryana, to distribution centres and dairy operators in Delhi, Shamli and Baghpat in Uttar Pradesh.
Makeshift Units Producing Fake Paneer
According to the investigation, several factories were allegedly producing paneer using non-dairy ingredients, including soybean extract, palm oil, vanaspati, milk powder, baking soda and Selkhadi, a mineral commonly identified as soapstone or talc.
The products were reportedly manufactured in different grades depending on the ingredients used, raising concerns about their authenticity and safety.
Fake Paneer Sold at Prices as Low as ₹80 Per Kg
The investigation found that different grades of paneer were being offered to bulk buyers at substantially different prices.
One trader reportedly offered paneer for ₹190, ₹160 and ₹120–130 per kg, depending on the ingredients used. Another operator allegedly offered soybean-based paneer at around ₹150 per kg, refined-oil-mixed paneer at ₹200 per kg and pure milk paneer at ₹290 per kg.
At another unit, a third-grade product reportedly described as “Ragdu” paneer was offered for just ₹80 per kg.
Such pricing raises concerns because genuine paneer production requires a substantial quantity of milk. Typically, around 4.5–5 litres of full-cream milk or 6–7 litres of regular milk may be required to produce one kilogram of paneer.
Supplier Claims Daily Dispatch of 4,000 Kg
The alleged scale of the network was another major concern highlighted by the investigation.
One supplier reportedly claimed to dispatch between 3,400 and 4,000 kg of paneer every day to Gurgaon through 18–19 customers.
Another operator allegedly claimed that his products were supplied to 10–15 distribution centres across Delhi, including Azadpur Mandi, Nangloi and Dwarka Mor.
Demand was also reportedly higher during the wedding season. One trader claimed that daily demand increased from approximately 1,200–1,300 kg to more than 2,200 kg.
Adulterated Milk Sold in Different Grades
The investigation also reportedly uncovered an alleged adulterated milk operation in Bhausni village in Shamli.
A wholesaler was said to offer three categories of milk — high quality, medium quality and cheap adulterated milk — with prices ranging from ₹35 to ₹60 per litre.
According to the investigation, skimmed milk was allegedly mixed with baking soda and Dalda or ghee to artificially increase its fat content. One wholesaler reportedly claimed that 1 kg of ghee and baking soda could be mixed with around 30 kg of skimmed milk.
Synthetic Khoya Allegedly Manufactured Using Selkhadi
The investigation also traced an alleged synthetic khoya operation to Baghpat.
An operator reportedly described a method involving 25 kg of Selkhadi, 25 kg of milk powder and Dalda, which he claimed could produce approximately 92–97 kg of khoya.
The operator further claimed that two workers could manufacture around 500 kg of synthetic khoya per day.
The alleged use of Selkhadi in food products raises serious food safety concerns, particularly because the material is an industrial mineral and is not a conventional food ingredient.
Questions Over Food Safety Monitoring
The investigation highlights the alleged existence of a parallel dairy supply chain operating across parts of Haryana and Uttar Pradesh and supplying products to Delhi-NCR.
The reported availability of paneer at prices as low as ₹80 per kg, combined with claims of large-scale adulterated milk and synthetic khoya production, raises concerns about food safety enforcement, supply-chain monitoring and consumer protection.
Authorities and food safety agencies face the challenge of identifying such unregulated manufacturing units and preventing potentially unsafe products from reaching consumers.
