An Anganwadi teacher and a milk businessman were arrested by the city police on Friday for allegedly indulging in pilferage of health products sanctioned by the State and selling them illegally.

Police said Shashikala was working as a teacher for the past 15 years at Boya Basthi Anganwadi centre in Musheerabad.

As part of Integrated Child Development Scheme (ICDS), the government provides nutritious powder to children aged between six months and three years, and to pregnant women.

Instead of supplying them to children and pregnant women, Shashikala was selling these packets to milk businessman, A. Sridhar Yadav, of Parsigutta, the police said. She was selling each 10 gm powder sachet for Rs.60 to Yadav who would lace it with cattle feed, the police said. Based on a tip-off, the police arrested Shashikala and Yadav, and seized 135 bags of notorious powder.

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