They said the company was the main distributor of liquid milk products in the Darawala-Dickoya area in Hatton.
According to Police, the contaminated milk was released into the Dickoya Lake earlier yesterday (17). The Dickoya Lake flows into the Castlereigh Reservoir.
The manager later told Police that the contamination of the stock of milk was caused owing to an explosion of a liquid holding tank.
The Hatton Police is conducting further investigations.