Hyderabad food-safety drive finds palm oil and emulsifier in ‘analogue’ paneer units; three FSSAI licences suspended

Is the paneer on the plate made from milk or vegetable fat? That question moved from kitchen talk to an enforcement file on 5 September 2026, when the Telangana Standards Authority for Food and Essential Drugs inspected 14 dairy units in Hyderabad and adjoining areas in a special drive against establishments making and selling paneer and other dairy products.

Officials found loose palm oil and glycerol monostearate — GMS, a food emulsifier that can bind vegetable fats, skimmed milk powder and water into a texture resembling dairy paneer — at units allegedly manufacturing analogue paneer. Use of such ingredients in unauthorised or misleading analogue products is what triggered public-health concern in the drive’s locked framing.

As part of the action, officers lifted 21 samples on suspicion of adulteration and seized food articles valued at ₹7.19 lakh. The seizures included approximately one tonne of palm oil, 476 kg of GMS, 1,760 packs of Mavee’s Classic Premium Cooking Cream, and 150 kg of skimmed milk powder on quality suspicion.

Three establishments had their FSSAI licences suspended and were directed to stop business operations immediately. Laxmi Foods at Gaganpahad was found unhygienic, with cockroach infestation, untidy milk containers and improper storage; officers recorded 600 litres of loose palm oil and use of GMS in paneer manufacturing. Dhana Lakshmi Dairy Products at Mailardevpally showed blocked drains, foul smell, house flies and poor handler hygiene, with 195 litres of loose palm oil and GMS alleged in paneer making. Natraj Milk and Milk Food Products in Alwal showed rusty asbestos sheets, dampness, moss and mouldy surfaces, and GMS use in paneer manufacturing.

Improvement notices were lined up for Sri Mahalaxmi Kendra at Khanapur, Ibrahimpatnam, and Anitha Dairy at Hayathnagar, with reinspection promised. Show-cause notices went to Geetha Dairy at Nadergul and to NARMUL (Mother Dairy), with further action including possible penalties proposed.

Analogue paneer is not a culinary curiosity when it is sold or stored in ways that mislead buyers who expect milk solids. The Investigate card here is the inspection map, the named suspensions, the litre counts of palm oil, and the ₹7.19 lakh seizure ledger — not a finished criminal conviction of every worker on every floor. Readers should hold the TG SAFE findings and licence suspensions as the established set, and treat any claim about how long the practice ran or how far the product travelled into city kitchens as unproven until laboratory reports and further orders close those questions.