Acting on a complaint that liquor chocolates was being manufactured in violation of rules, the excise officials conducted checks at a facility in Mallepally. They also seized liquor bottles in large numbers during the raid.
The Excise Department has identified about 100 companies that are manufacturing liquor chocolates in and around Hyderabad. Sources said they would be served notices.
Many chocolate cafes in the city sell liquor chocolates, the sales for which pick up during the festive season.
The manufacturers and sellers came under the scanner of the department in the wake of recent clarification by the Food Safety and Standards Authority of India (FSSAI) that liquor chocolates are strictly prohibited in India and its sale is illegal.
FSSAI has classified chocolates into eight varieties in which liquor chocolates are not included.
The FSSAI also clarified that even imported chocolates containing alcohol is not permitted in Indian markets.