Police found several used buckets of top dairy brands from the factory premises. Ravindar Rao, manager of Mahendri Dairy Products, was taken into custody and a cheating case was registered. Patancheru deputy superintendent of police Bheem Reddy told TOI that the factory management was using a mix of milk, skimmed milk powder and chemicals to make curd. “Around 50 top brand used buckets which are being filled with curd, made in the factory, were found. They are supplying this to hotels, mostly in the Old City. Every day, they are supplying 1,000 kg to 5,000 kg of curd. Even the milk powder they are using is not branded,” he said. The factory is owned by Pavitra Dairy Products Private Limited and was leased to Mahendri Dairy Products owned by G Venkateswara Rao. “We found milk, curd, kova sweet, paneer and ghee. Most of the products are not up to the market standards. They are selling all top brands adulterated for a lesser price. It is a major health hazard. We have informed the food inspector of the area for strict action,” said Bheem Reddy.

Ravindar Rao told cops that Mahendri Dairy was supplying the products to hotels in Old City. “We seized 6,000 litres of white liquid, which they are claiming as milk. The factory has huge milk containers and machines for packing. It also has a testing lab,” the DSP said.

Sareen Kumar Gogi of Pavitra Dairy told TOI: “Due to the pandemic, we closed down the factory. For six to seven months, there were no operations. We have recently leased the unit to G Venkateswara Rao. For the past two months, he has been running the factory. We are not operating the unit.”

Sareen Kumar said: “Venkateswara Rao said he wanted the factory on lease for chilling purposes. However, buying empty buckets is a violation. Skimmed milk powder can be used to balance solids-not-fat (SNF) in the milk procured which is not a violation.”

Venkateswara Rao was not reachable on phone.