In a significant enforcement action underscoring mounting regulatory scrutiny of India’s dairy sector, the district administration and the Food and Drug Administration (FDA) have suspended three dairy manufacturing licences in Indore following the detection of extensive irregularities in ghee production and marketing.
The action follows a detailed inspection at Palda-based Shri Ram Milk Food & Dairy Industries and two other firms operating from the same premises under separate licences. FDA teams collected ten ghee samples across different brands and pack sizes and seized 3,409 litres of ghee, estimated to be worth nearly ₹20 lakh.
Substandard Quality and Systemic Non-Compliance
Laboratory analysis revealed that seven of the ten samples were substandard, failing nearly five critical quality parameters prescribed under food safety regulations. Products that did not meet standards included multiple variants of SRMI Mother Choice, SRMI Milk Cream and loose ghee, all packed and marketed by the same business group.
Officials described the findings as indicative not merely of isolated lapses, but of systemic non-compliance. The investigation established that the three licence-holding entities were effectively functioning as a single unit. They shared common entry and exit points, processing machinery and storage facilities, contrary to claims of independent operations.
Further scrutiny revealed that financial control of all three firms rested with a single individual, Narendra Kumar Gupta. One firm named a different proprietor, yet investigators were unable to trace any supporting GST documentation or independent banking transactions, raising serious doubts about the authenticity and intent behind the multiple licences.
Repeat Offender Raises Public Health Concerns
The case has been treated with particular seriousness due to the group’s prior history. Authorities confirmed that the brand has previously faced convictions in Indore, Dewas, Dhar and Harda, while several cases remain pending in Ujjain, Mandsaur and parts of Rajasthan. Regulators noted that repeated violations, coupled with the scale of alleged adulteration, pose a direct risk to public health and undermine consumer trust in dairy products.
In light of these factors, the FDA suspended all three licences with immediate effect. Officials stated that once the investigation is completed, the full case file will be placed before the competent court for prosecution.
Parallel Enforcement Actions
In a related operation, FDA teams raided Shyam Marketing at Gadi Adda after ghee was found being sold at an unusually low price of ₹270 per kg, well below prevailing market rates. Suspecting adulteration, officials seized 74 kg of ghee and collected four samples for laboratory testing.
Separately, an inspection at Parv Food & Productions in Palhar Nagar exposed unhygienic conditions in the manufacture and storage of gajak and chikki. Samples were drawn and a formal notice issued, warning that failure to rectify deficiencies within the stipulated timeframe would result in suspension of the unit’s registration.
Regulatory Signal to the Dairy Sector
Taken together, these actions signal a more assertive regulatory posture towards food adulteration in the dairy and confectionery segments. For legitimate dairy processors, the crackdown reinforces the importance of strict adherence to quality standards, transparent operations and traceable financial practices. For consumers, it highlights both the risks posed by adulterated ghee and the growing willingness of authorities to intervene decisively in the interest of food safety.