The racket reportedly operates on an industrial scale, with agents boasting the capacity to supply up to 12,000 kilograms of paneer in three hours to food businesses across multiple states. The unusually low price point — far beneath authentic paneer made from milk — flagged the products as suspect and triggered investigations by local food safety authorities.

Fake or analogue paneer is typically made not from milk but from a mixture of starches, palm or vegetable oils, milk powder and chemical whiteners, giving it a semblance of cottage cheese while significantly reducing production costs. These industrial substitutes are nutritionally inferior and can pose health risks if consumed regularly, according to food safety experts.

Across India, food safety departments have clamped down on similar operations, seizing adulterated dairy products including paneer, milk and other processed items as part of ongoing enforcement drives. These widespread raids reveal that fake paneer and other adulterated dairy products continue to infiltrate markets due to weak regulation and consumer demand for cheaper alternatives.