Dodla Dairy has issued a clarification regarding media reports about potential FSSAI legal proceedings. The company highlighted major discrepancies between a primary lab report finding milk as 'substandard' and a referral lab report claiming it was 'unsafe,' noting the latter test occurred two months past the product's shelf life. Dodla Dairy confirmed no formal prosecution order has been received and stated there is currently no material financial or operational impact on its business.
Dodla Dairy Addresses FSSAI Regulatory Matter
Dodla Dairy has addressed recent reports concerning potential legal action from the FSSAI following a dispute over a milk sample quality test.
What just happened
The company released a clarification following an FSSAI social media post dated 17 October 2026. The issue involves a 500 ml sample of 'Full Cream Milk' collected from the company's Nilakottai plant in Tamil Nadu on 09 January 2026. Dodla Dairy maintains that it has not yet received any formal prosecution order or sanction from the regulator.
Why this matters
Investors are tracking the situation due to the significant discrepancy in laboratory findings. A primary laboratory report on 20 January 2026 labeled the sample as 'substandard' regarding fat content but explicitly noted the absence of detergents or neutralizers. Conversely, a referral laboratory report dated 20 March 2026 classified the same sample as 'unsafe' and claimed the presence of detergents and caustic soda. The company points out that the referral test was conducted two months after the product's 12 January 2026 'best-before' date.
The company position
Dodla Dairy submitted a formal representation to the FSSAI on 24 April 2026 to contest these findings. The firm emphasizes its commitment to safety, asserting that all milk batches undergo stringent internal testing before distribution. Management has confirmed that there is no immediate financial or operational hit to the company's activities.
What to track next
The company has committed to keeping shareholders informed and will provide updates as required under SEBI regulations should any material developments occur regarding the potential legal proceedings.