Illegal Paneer Factories Operating Near Delhi
An undercover investigation has exposed an alleged organised network supplying fake paneer, adulterated milk and synthetic khoya across Delhi-NCR.
The investigation, conducted in February 2026, traced the supply chain from manufacturing units in Mewat, Haryana, around 130 km from Delhi, to distribution centres and dairy operators in Delhi, Shamli and Baghpat in Uttar Pradesh.
The probe found makeshift factories producing paneer using ingredients such as soybean extract, palm oil, vanaspati, milk powder, baking soda and Selkhadi (soapstone/talc powder).
Fake Paneer Sold For As Little As ₹80 Per Kg
The investigation found several grades of paneer being offered to bulk buyers.
One trader offered paneer at ₹190, ₹160 and ₹120-130 per kg, depending on the ingredients used. Another operator offered soybean paneer for around ₹150 per kg, refined-oil-mixed paneer for ₹200 per kg, and pure milk paneer for ₹290 per kg.
At another unit, a third-grade product described as “Ragdu” paneer was offered for just ₹80 per kg.
The price raises serious questions because producing one kilogram of genuine paneer typically requires 4.5-5 litres of full-cream milk or 6-7 litres of regular milk.
One Supplier Claimed To Send 4,000 Kg Daily
The scale of the alleged operation was also striking.
One supplier claimed to send between 3,400 and 4,000 kg of paneer every day to Gurgaon, through 18-19 customers. Another operator claimed his products reached 10-15 distribution centres in Delhi, including Azadpur Mandi, Nangloi and Dwarka Mor.
During the wedding season, one trader said daily demand increased from around 1,200-1,300 kg to more than 2,200 kg.
Adulterated Milk Sold In Three Grades
The investigation also uncovered an alleged adulterated milk operation in Bhausni village, Shamli.
A wholesaler offered three grades of milk — high quality, medium quality and cheap adulterated milk — priced between ₹35 and ₹60 per litre.
According to the wholesaler, skimmed milk was mixed with baking soda and Dalda or ghee to artificially increase fat content. He claimed that 1 kg of ghee and baking soda could be mixed with 30 kg of skimmed milk.
Synthetic Khoya Made Using Soapstone
The investigation then reached Baghpat, where an operator claimed to manufacture synthetic khoya.
One method described involved 25 kg of Selkhadi, 25 kg of milk powder and Dalda, which he claimed could produce approximately 92-97 kg of khoya.
He further claimed that two workers could manufacture around 500 kg of fake khoya every day.
The investigation raised serious food safety concerns over the alleged use of Selkhadi, an industrial mineral, in products intended for human consumption.
Questions Over Food Safety Enforcement
The investigation presents evidence of an extensive parallel dairy economy stretching across Haryana and Uttar Pradesh and supplying Delhi-NCR.
With fake paneer allegedly being sold at prices as low as ₹80 per kg and large quantities of adulterated milk and synthetic khoya entering the supply chain, the findings raise serious questions about food safety monitoring, enforcement and consumer protection in the region.
Summary
An undercover investigation has exposed an alleged Delhi-NCR supply chain involving fake paneer, adulterated milk and synthetic khoya. Units in Mewat reportedly produced paneer using soybean, palm oil, vanaspati and milk powder, with prices ranging from ₹80 to ₹290 per kg. One supplier claimed to send up to 4,000 kg daily to Gurgaon, while another alleged synthetic khoya operation claimed to produce 500 kg every day.
