"We have seized 21,752 pouches of fake blood plasma and five persons have been arrested in this connection," Punjab Police AIG (Counter Intelligence) Ajay Maluja said.
The fake blood plasma was reportedly made from egg yolk, refined oil, soybean milk in a two-room house here and the consignment was to be supplied to a Mumbai-based company, he said.
Initially, police had received information that drugs were being transported in a van.
During preliminary investigation, police found that the main accused, Dilbagh, had made an agreement with the Mumbai-based company for supplying 5,000 litres of blood plasma for Rs 1.25 crore.
"The accused had received Rs 62.50 lakh in advance and the rest was to be given after delivery of the consignment. Dilbagh claimed that blood plasma was to be used in cosmetic items," Maluja said.