Police seized 60 maunds of adulterated ghee and vegetable oils from a factory near Chittagong University (CU) in the early hours of yesterday.
They also arrested five people in this connection.
The arrestees were identified as Akash, Sagar and Vishnu of Tangail, Shahid of Mymensingh and Rahim of Bhola.
Sources said Hathazari police unearthed the factory housed in a thatched structure at CU Gate No 1 beside Chittagong-Hathazari Road.
In a drive that started at around 2:30am, they seized 13 drums of adulterated ghee and vegetable oils and 7 drums of palm oils from the factory.