The regulatory crackdown follows an extensive 10-month testing sweep conducted between January 1 and October 31, 2026. Official state laboratory analyses of 60 paneer samples collected across wholesale and retail hubs revealed alarming non-compliance: 41 out of 60 samples (68.3%) failed prescribed quality standards. Of the non-conforming batches, 36 samples were formally categorized as substandard, while five samples were declared outright unsafe for human consumption due to hazardous adulteration and severe contamination.

Announcing the findings in Guwahati, Assam Health and Family Welfare Minister Ashok Singhal confirmed that food safety inspectors detected widespread fraudulent substitutions. Commercial batches sold as genuine paneer were found to have milk fat stripped and replaced with cheap refined palm oil, soy fat, and foreign animal fats, alongside excessive moisture loading and starch fillers used as bulking agents. Singhal emphasized that offenders will face strict penalties under the Food Safety and Standards Act, 2006, including financial penalties of up to ₹5 lakh for substandard items, up to ₹10 lakh plus potential imprisonment for distributing unsafe food, and up to ₹3 lakh for deceptive misbranding.

The statutory directive establishes clear operational boundaries between standardized dairy and industrial substitutes. Food business operators (FBOs)—encompassing hotels, restaurants, outdoor caterers, cloud kitchens, and institutional canteens—are prohibited from processing, serving, or storing non-standardized dairy analogues that mimic genuine paneer without explicit, compliant labeling. Commercial food service kitchens must verify the composition, batch origin, and FSSAI regulatory status of all dairy procurement before purchase, while immediately withdrawing suspected non-compliant inventory and notifying enforcement officers. Legitimate plant-based or blended analogues remain legal only if clearly packaged, labeled, and sold under approved analogue standards without deceptive dairy terminology.