FSSAI suspends AR Dairy's licence for ghee over adulteration and false information
Based on the provisions of the Food Safety and Standards (FSS) Act, 2006, A.R. Dairy and its representatives could face a range of severe penalties like heavy monetary fines, imprisonment, and blacklisting.
The company allegedly supplied adulterated ghee to Tirumala Tirupati Devasthanams (TTD), with potential foreign fats detected.This action comes after a previous suspension order from 14 February 2025, which was set aside by the Madurai Bench of the Madras High Court, which directed FSSAI to conduct a personal hearing.
Multiple tests, such as gas-liquid chromatography (GLC) and high-performance liquid chromatography (HPLC), were performed as per the Food Safety Standards Act to check for ghee adulteration. These tests analyze the ghee's fatty acid profile. The presence of plant-based compounds like β-sitosterol, which are not found in pure milk fat, confirms adulteration.
Tirumala Tirupati Devasthanams trust manages the operations and finances of the Venkateswara Temple in Tirumala, and is one of the most visited religious centres globally.
The FSSAI's decision follows a previous suspension order from 14 February 2025, which was set aside by the Madurai Bench of the Madras High Court. The court had directed the FSSAI to give the company a personal hearing before issuing a new decision.
Following this directive, a hearing was held on 3 June 2025, where A.R. Dairy Food representatives failed to provide satisfactory explanations or documentary evidence to FSSAI's Designated Officer addressing these allegations.
The FSSAI cited several serious contraventions. First, the company was found to be selling and distributing ghee to TTD without a proper license for repackaging or relabeling. The company was not licensed for this activity.
Second, the dairy provided false information to both FSSAI and TTD, claiming that the ghee was manufactured at their Dindigul facility. In reality, the ghee was procured from another firm, Sri Vyshnavi Dairy Specialties in Andhra Pradesh. During the personal hearing, company representatives admitted there was no written agreement with Sri Vyshnavi Dairy, stating the arrangement was made in "good faith". They also could not provide information about the traceability of four lots of ghee that were rejected by TTD and returned to Sri Vyshnavi Dairy.
Queries sent to the Union health secretary, health ministry spokesperson, FSSAI headquarters in New Delhi, FSSAI's Southern Regional Office in Chennai, Central Bureau of Investigation and A.R. Dairy remained unanswered till press time. TTD and Sri Vyshnavi Dairy could not be contacted.
The FSSAI noted this was a violation, as the company failed to report the rejection of the supplied ghee to the food authority.
The suspension order, seen byMint, stated that the Designated Officer concluded that the company's submissions did not clear them of the violations. The FSSAI stated that the company appeared to have the intention of deceiving consumers and manipulating the process by providing false information.
The FSSAI highlighted a major discrepancy between A.R. Dairy's declared production and the quantity supplied to TTD. According to annual returns, the company produced 14.15 MT of ghee in 2021-22 and 155 MT in 2023-24. Yet, the tender agreement required them to supply 850 MT over six months—far exceeding their reported capacity.
The Central Bureau of Investigation (CBI) is still investigating the matter.
'The case serves as a warning to other food businesses that such violations will not be tolerated, protecting consumers from potentially adulterated products and false information,' the person familiar with the matter said, requesting anonymity.
The FSSAI ensures food safety through regular, risk-based inspections and random sampling of food products. Both the central and state food safety departments conduct these checks to ensure compliance with quality and safety standards.
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